Did anyone see this?
http://www.bbc.com/news/magazine-32402945
Thoughts??
Courtsiding
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marksmeets302
- Posts: 527
- Joined: Thu Dec 10, 2009 4:37 pm
It's the same old story. Somebody makes some money, others are jealous, make up new rules and convince the public that these rules are a good thing.
It's the same with the flash crash arrest one or two days ago. A guy invents a way to make money, and sends the dow jones 1000 points lower in seconds. People are upset, because hey, that's not supposed to happen. New rules are invented, people are arrested.
But as with all rules... be careful what you wish for, there might be some unintended consequences.
It's the same with the flash crash arrest one or two days ago. A guy invents a way to make money, and sends the dow jones 1000 points lower in seconds. People are upset, because hey, that's not supposed to happen. New rules are invented, people are arrested.
But as with all rules... be careful what you wish for, there might be some unintended consequences.
I think you are wrong here. If you went to buy some bread but every time you went to buy it the price shot up to €100 but every time you walked away the price reverted to mean. You would feel cheated and you could easily claim the bread market was suffering because of this behaviour. Nobody could get a fair price for bread so people would just not bother. Same with market manipulation.marksmeets302 wrote:It's the same old story. Somebody makes some money, others are jealous, make up new rules and convince the public that these rules are a good thing.
It's the same with the flash crash arrest one or two days ago. A guy invents a way to make money, and sends the dow jones 1000 points lower in seconds. People are upset, because hey, that's not supposed to happen. New rules are invented, people are arrested.
But as with all rules... be careful what you wish for, there might be some unintended consequences.
I have never courtsided, but I have no issues with those that do
Let's be honest here - why do we use BA?, why do we spend hours creating automated bots?, why do we use VPS connections?, why do we devise and analyse various strategies?
It's so we can have an edge over everyone else!
Courtsiders are no different IMO
Let's be honest here - why do we use BA?, why do we spend hours creating automated bots?, why do we use VPS connections?, why do we devise and analyse various strategies?
It's so we can have an edge over everyone else!
Courtsiders are no different IMO
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Wainwright
- Posts: 108
- Joined: Mon Jan 23, 2012 1:10 pm
I don't really have a problem with courtsiders either.
I do with fixing outcomes though - it's well worth listening to the radio programme the article comes from;
http://www.bbc.co.uk/programmes/b05r3w43
Mentions match fixing syndicates & the scale of betting in South East Asia, at 31:40 it states that typically £5-10 billion is bet on a televised Premier League football match.
£5-10 billion !!
I do with fixing outcomes though - it's well worth listening to the radio programme the article comes from;
http://www.bbc.co.uk/programmes/b05r3w43
Mentions match fixing syndicates & the scale of betting in South East Asia, at 31:40 it states that typically £5-10 billion is bet on a televised Premier League football match.
£5-10 billion !!
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marksmeets302
- Posts: 527
- Joined: Thu Dec 10, 2009 4:37 pm
This analogy needs improvementIf you went to buy some bread but every time you went to buy it the price shot up to €100 but every time you walked away the price reverted to mean. You would feel cheated and you could easily claim the bread market was suffering because of this behaviour. Nobody could get a fair price for bread so people would just not bother. Same with market manipulation.
. Better would be to say: the market in bread is 1 pound bid, 2 pounds offered (I have no idea what a bread costs these days, sorry). Now HFT steps in and improves the market to 1 - 1.05. So you think you can buy at 1.05. Well, it turns out you can't, the HFT guy cancels his order just in time and if you really want your bread, you have to pay the normal price, which is 2 pounds. However, under some circumstances you can get your bread for 1.05, probably because somebody else wants do desperately sell his for 1.01 - in a different shop. Yes, you could buy it from him, but you didn't know of his existence because he's in a different shop (or exchange)So in the end, you the customer think you're being screwed over, but on average you're better off than before.
Of course, you could say, well this wouldn't happen if there was only one global bakery! Sure, but the SEC, in all its wisdom pushed for more competition between exchanges. That's why the US went from a handful of exchanges that each traded their own subset of stocks, to a what we have now: many exchanges, mostly covering the same stocks. So if anyone is to blame for the flash crash, it's the people that made it possible and that would be the SEC. (And this is what I meant by "careful what you wish for, there might be unintended consequences")