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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: CraigNZ who wrote (18128)	12/31/2012 11:18:42 AM
From: Eric P	2 Recommendations Respond to of 18137

Hi Eric, What is it about HFT activity that erodes the trading environment for you? Craig. I think HFT's have moved much of the 'real' liquidity out of the open and into the dark. On the majority of stocks (those with spread of 5-25 cents), HFT's tend to penny jump the bid and offer to ensure they are first in line for a fill. Those that post 'real' orders are at a disadvantage, and tend to lead to fewer real orders in the market, with the associated wider spreads. In general, I think this had led to wider spreads to the extent that real orders have left the market (and the associated increasing trading costs for those that remove liquidity due to the increased spreads). For those that add liquidity, the perpetual HFT penny jumping and zero latentcy tricks to ensure first-in-line at the queue had led to fewer fills on non-marketable orders.