i have trade for 20 years off and on from day trading to swing to investing and the one order that I nver really paid much attention to was the cancel. I never even looked at it as an ordr typer or that it had POWER to move the market. However, spoofing has shown that cancelling has a lot of power and that AGGRESSIVE cancels by an HFT or ALGO can actually force Aggressive orders by retail to get filled. The cancel is free. there is no TRANSACTION COST OR RISK to use a cancel of an order. This cancel has no commission and not fee. Yet the if you place a 300 lot buy limit on the order book at the cme.. you can cancel 299 of them and your 1 lot now keeps it's priotity in the book... so if the 1 lot gets filled and no other orders come in within that microsecond then the next trade would be lower as now that the 1 lot level at price was matched..the spread will move.. lower by that tick. THIS THREAD IS TO DUSCUSS THE CANCEL ORDER let's get talkling about cancels
The CME has a ratio with a $ 1,000 dollar fine which is nothing based on the number of cancels to fills. There are certain times that the cme 'LIFTS" the cacnel ratio which allows even more cancels to take place. which allwos even more fake bricks to be taken out of the wall.. if one assumes limit orders are bricks in a wall. The cme doesn't care and does nothing about all of yuor cancels so long as you keep paying the 1000 fine. there never is a halt or anythign on teh accounts doing this.. jsut a 1000 debit. nightly.. last time they "turned off " the cancel ratio was the tuesday night" yes last tuesday ngiht before the big sell off thursday night.. hmmm.. thikn about that
It doesnt' affect me as I only look at nearest bid and offer volume. I like those brokers who only present to you the nearest bid and offer volume. Brokers do this to safe cost. It is also good to us as we don't need irrelevant data.
No shit. So what s your point? NSDQ ecn lets you post “X” and you’re only obligated to fill 100 if you’re NBBO. If you’re behind in the Que you can post unlimited size and you can pull without getting filled on a single share.
Pointless really. I buy call and put options and numerous times, the market maker widens the spread between bid and ask say, it is now bid 2.00 ask 2.50. Market maker drops the bid to 1.00 ask 2.50. That is why as a retail trader, you should always use limit orders even if hitting the bid or ask prices. That way, you do not overpay. I just cancel my order when I see that. The next morning, chances are good, the same market maker now offers the option at bid 3.00 and ask 4.00. The key is waiting for it the next day. Market makers will raise the option prices as they are selling the cheap options they got from amateur retail traders, giving you a better fill assuming you are trying to get out! Do not be fooled and taken advantage of!
in futures you can only post what you can afford. your account will not let you ghost a 500 lot if u dont have it. futures should allow as much on the book then..so big algos might get nervous cuz wont know if 500 lot real or not..so hows that work in stocks