liquidity dissapears

Discussion in 'Order Execution' started by Javier, Jan 30, 2015.

  1. Javier

    Javier

    I wanted to ask a question:

    i see into the order book of the broker an ask price price close to the price with tons of liquidity.
    I wanted to sell that guy my order and i place a bid of the order .i short sell before.

    But the price couldn touch just for a very small distance and that ask prices smoke off..
    Who is that possible?
     
  2. High Frequency Theft
     
  3. d138

    d138

    Change your broker
     
  4. Javier

    Javier

    ok tx i suspected about that =)
     
  5. Not sure what you're describing; it's not bad English, it's that you haven't used any numbers.

    Let me make up some unrealistic numbers for a very illiquid stock. Suppose the stock was bid $11.00, ask $12.00 with big liquidity asking $12.05. If you put in an order to buy at $12.05 it might be kicked out because you're not allowed to trade outside the spread (unless you have your workstation programmed to automatically take the better orders first). And if you put in a big order to buy at say $11.95, then the appearance of your order could have scared off the folks on the ask. There are computer programs intended to detect when someone is trying to buy a lot of stock. So one of those programs could have front ran you. Try hiding your size.
     
  6. rmorse

    rmorse Sponsor

    TooOldForThis,

    From past questions, I believe he is trading FX.

    Bob
     
  7. Javier

    Javier

    yes it is, the point is that inside the spread? (probably i misundestand concept) In eur/usd with spread 0.2, inside the spread i won nothing. So i try to trade to the one asking (i think it could be the market maker providing liquidity). Am i wrong? Becouse I asume that if i match my order with comeone to sell the logic says it will trade ?¿
     
  8. All Liquidity Disappears From Euro FX Market Day Ahead Of ECB Announcement
    In what is likely an effort to comprehend whether the market is satiated with a mere EUR 50 billion per month in printed money, this morning's leaked ECB QE announcement (due tomorrow) sparked total chaos in FX markets and, as Nanex notes, sending market liquidity to near record lows. This is a problem. With the 'real' volatility event not arriving until tomorrow, everyone has pulled out of the market already, setting the scene for a gappy Swissnado replay tomorrow morning...
    [​IMG]
     
  9. Javier

    Javier

    lol nice tx =)