If they went back to fractions (which they should) the bots/HFT guys would be wiped out. With 1/16 ths and only 6 price points each dollar they wouldn't be able to play the bullshit games they do now. They are having a rough enough time right now (as expected as over time their game got more competitive and they began eating each other like sharks). Going back to fractions would finish them off.
and that's precisely why it's not going to happen. they have too much money on stake..them,exchanges,who sells them data and co location,ECN's -they will lobby this idea to the very end. like i said before-the whole trend for last decade was to kill the retail trading. and SEC(same people who did it) all of a sudden became "retail friendly"? doubt that...
i would love to see more "pro retail" changes,but so far-I've seen none in my 12 years of trading. not even ONE. starts (once again) with decimals and PDT
spreads are greater than ever on stocks i trade(cause REAL volume is dying l),but there is one problem-impossible to get fill on winning trade,where stock is going to move your way. magically there is always "someone" on front of you
Getting fills on a stock that is on the run has always been a issue! This was true back then and today. If you are chasing stocks then you are in a losing position. Anyone who trades size never chases a stock. It is dumb, reckless and sign of a newbie trader! Always buy on the pull backs and sell into rallies. You know the saying "Feed the Ducks When They Are Quacking".
and that's precisely why it's not going to happen. they have too much money on stake..them,exchanges,who sells them data and co location,ECN's -they will lobby this idea to the very end. like i said before-the whole trend for last decade was to kill the retail trading. and SEC(same people who did it) all of a sudden became "retail friendly"? doubt that...
i would love to see more "pro retail" changes,but so far-I've seen none in my 12 years of trading. not even ONE. starts (once again) with decimals and PDT
I hear ya man. I started in 1992 back in the days of specialists and 1/8ths on NYSE. Trading equities was so much better. Grasso was on CNBC this morning making great points about goin to nickle increments. I'm not a big fan of Grasso, but hopefully others feel the same way. Even .05 increments would change things for the better.
The HFT firms seem to be coming under more and more attack and likely will have less pull as time goes by....and with their profits declining rapidly they will have less and less reason to fight.
You know how algos can buy at subpennies right now? What if they end up putting everything back on 1/8 and the algos can do 1/16? There's enough money in HFT that I could see it happening..
Ask any equity trader who traded in 1/8th's and 1/16ths back in the day. They will tell you how much better equity trading was. If the SEC is wise and does go back to 1/8th's equity trading will explode again. I started in 1992 and traded through the change to decimals/pennies. Shortly after the change went into futures and never looked back. I'd be willing to bet a lot of guys would go back into equity trading, getting the volume back and making equity trading a whole lot better. Also you wouldn't see anymore of these flash crash bullshit moves in stocks.
correct.
Anytime you can step in front of orders by shaving say below a nickel, you are going to piss off the people providing real orders. real piles of shares have to be rewarded for sitting there. that is what creates a good market.
People with shares (institutions) parking orders make for good trading.
I note some of the guys who traded back in the 90s sense nickels was threshold.
Anytime you can step in front of orders by shaving say below a nickel, you are going to piss off the people providing real orders. real piles of shares have to be rewarded for sitting there. that is what creates a good market.
People with shares (institutions) parking orders make for good trading.
I note some of the guys who traded back in the 90s sense nickels was threshold.
At the end of the day, their little experiment (which has gone on now for 12 years) by going to pennies/sub pennies is a colossal failure. Just look at the volume on the stock exchanges. Has plummeted. With these HFT's running the mkt trading for subpennies the interest in equity trading has plummeted and gone.
Then take a look at futures trading. While the volume might have decreased over the years a bit, it's not even close to what happened in the equity market. Futures trading is cut and dry. A lot less price points. Not nearly as much bullshit goin on with the HFT in futures.
Most of the equity guys I have known over the years are either out of the biz, or switched over to futures. Trust me, if stocks go back to even .05 increments some of the futures guys will venture back into equities. And a lot more people will get back into equity trading.
