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Strategies & Market Trends : Technology Stocks & Market Talk With Don Wolanchuk -- Ignore unavailable to you. Want to Upgrade?

To: kidl who wrote (41255)	7/12/2009 5:23:24 PM
From: catflu2™	Read Replies (1) \| Respond to of 207363

No, its basically arbitrage. All the conspiracy stuff is a very safe way to approach the market in my opinion for the small investor. You know, assume its rigged and think like a criminal. The primary problem they (big houses) run into is counterparty trading to support the model. So they invented "synthetic sides". Its what Enron got popped for. More or less. Enron is a great example actually. They got so long they were vulnerable and we all know what happens with leverage on the downside....lol. Enron had fake trading accounts in th Isle of Jersey (where my wife is from BTW) that would buy the other side up. I've had close associates that worked and programmed arbitrage software. Kind of an ATM machine if you are working with fungible contracts.Other geniuses figure it out its gets crowded, flies on chit and the programmer steals or sells the idea and blammo they gotta think of something else. Cuz they are basically lazy. The stuff about being the closest to the exchange because of trading speed is dead nuts correct actually. Very few people are aware of it. Anything else you wanna know?