Registered: Aug 2006
03-01-11 05:26 AM
What he wrote could make sense if it wasn't really front running. They receive the limit buy, buy the shares for their book, then hold them until the stock ticks up or down. If it up ticks, they keep the position for themselves. If it down ticks they give it up to the customer. It's risk free scalping.
Quote from tomk96:
i would think it's highly unlikely they are front running you. i don't know how their platform works, but the risk/reward for front running you doesn't make much sense.
can you direct where your order gets routed? are there any default contingencies on your orders? i'm assuming there is enough volume in the market to absorb your order. if they are doing anything with your order, odds are they'd want to be taking the other side.
Who knows if they would do that or could actually get away with it. I would hope not, but not much I hear about equities really surprises me anymore.