I trade the 10 year note and see guys flashing up fake bid/offers to "hold" or move the market all day long. This is after a while you get used to watching it so i dont see what the big deal is. I do get a lot of amusment when a bigger fish comes in and hits these guys on their fake bids and watch the guy puke out 3 ticks lower. I mean is this 1 guy the only person doing this? I doubt it. Is he trading with himself? I doub it someone else is probably hitting his bid.
Actually if you don't have the money in the account to cover the trade were it ever executed the exchange won't do anything. A couple years ago before the mini's became the lead contract a guy loaded the book with bids and the xchange fined him 20k for his trouble.
correction- If you don't have the money the exchange would fine you so if you have the money in the account it's considered a good order.
i dont think the clearing firm/brokerage firm would even let you enter an order that you dont have the money for. with a 20k account you would not be able to put in an order for 1000 minis. some clearing firms MIGHT if you are a huge trader with a few accounts. if you stack the market with bids i would think the money had better be in the account. anyone ever try this?
i guess i dont understand why the guy got fined for putting in the orders? if your a member at the merc and trading on glbx with 20 k in your account you can put in any size order you want? this might be true but it doesnt make much sense. i would think the clearing firm woudlnt be too happy about it. i guess if you were scalping for ticks....well whatever. sounds crazy buy who am i to argue. thx for listening and happy trading. jim
He got fined because he didn't have the money to cover the trades and it puts the clearinghouse on the hook for the dough. You don't put the exchange or the people that clear your trades at risk of losing money otherwise you can do pretty much whatever you want.
As someone who watches the ten year note every single day and is able to see the pit traded counterpart I agree with Urkel. Over the last few months someone has been putting up huge size in the ten-yr or bond and will pull it within seconds. Lately though they have been hit on it and often times end up getting out with a big loss on their hands. Also, haven't seen them around during any of the number times, guess they are scared to play with the big boys then.
I dunno....watching Mr. 990 has made a lot of money for the traders in my room. He signals the extremes guys. Use the edge he gives you instead of complaining about it. Since when is it illegal to make an offer and then cancel it?