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  #64  
Old Aug 28, 2009 11:35am
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Porkpie: "To think this will change the dynamics of the market is ridiculous."
Famous last words of the slew of news traders in Oanda a few years back Porkpie. Retailers acting in concert can and do affect the market you're trading in.

I didn't PM the OP, but I can see why some people might depending on where he goes with it.
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  #81  
Old Aug 28, 2009 6:20pm
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Quote:
Originally Posted by Porkpie View Post
Yes point taken but wasn't news trading a fad (blown out of all proportion by the marketers) that had its bubble burst. [/font][/color]
PP, news trading with Oanda, specifically, had its bubble burst, and Olsen stepped in and changed their business model. Even now, Oanda has the highest spreads at news time of all the retail brokers, far higher than ECNs and other NDD models. Granted, they're probably not quaking in their boots right now though
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  #534  
Old Sep 7, 2009 2:16am
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Quote:
Originally Posted by PeterFM View Post
As I understand it, a major order may have to be filled in stages due to the need to keep a level of secrecy or simply due to the available orders resting in the market.
Agh, I vowed I'd sit out on this thread but Peter, I always liked your posts, so briefly...

"As I understand it, a major order may have to be filled in stages due to the need to keep a level of secrecy or simply due to the available orders resting in the market."

Yes - all you're trying to do is lever in a large position at the best possible price. Hiding identity and size is crucial to this.

Getting into position might be done over minutes, hours, days or even weeks, and accordingly different tactics are required depending on your size.

There are many ways of doing this - averaging being the least proactive. If you're trying to leverage in at the best price, you're only after one thing - liquidity. You either generate your own liquidity by convincing everyone price is heading one way, or you head for existing pools - aka banks of orders.

And even once you've decided how, there's the small matter of execution; it used just to be iceberg orders and not a lot else. Nowadays there are hundreds of execution algos for this very purpose, all operating with a minute edge and with the aim of disguising how big an order really is, and to minimise price going against you. On the flip side, there are hedge funds reverse engineering those algos to determine trade size (and therefore extent of informed trades)... but that's another ballgame.

If you as a retail trader follow suit and average in as well, what are you doing? OK you're literally front running, but to what advantage?

Hope this helps a little
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  #792  
Old Mar 15, 2010 8:37am
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...

Last edited Mar 15, 2010 6:16pm | Reason: thought better of it
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