" The exchange says algorithmic trading is becoming an increasingly important part of the exchange's business.RSJ says it enters large orders to ensure the best allocation on trades but that it usually wants to wait until after other Liffe members enter orders, to ensure support for certain contract prices.Liffe declined to comment."(END) Dow Jones Newswires07-24 This is the interesting part of the article I was referring to. Although having said all this you have to wonder where the fuck these market makers were when a 120 tick stop goes off in the Short Sterling on Friday,I mean what do they actually do?
yes the sterling move is part of an on going trend now. 4 times last year you could have cleaned up simply working orders 50 to 100 points away. 2 times on the bund. 1 time on eurodollars. 1 time on sterling. the working depth in the order book is non existent. as you said where are the market makers. they are making markets in outright products but only quote based on prices they can counter hit through spreads. that is they are quoting thru autospreaders. that is they are not really making a market at all. i would like a 100 k a month to quote when i want. pull my orders when its thin , busy or numbers out. money for old rope.
You should think this is heaven though if you can make the market yourself. Wouldnt you prefer to be the only market maker as opposed to one amongst 50 others? We don't need ridiculous liquidity. The people that should be complaining are those that need to come to the market to get off thousands of contracts at a single price, because in those markets you mentioned there are only a handful of times a day when this can be done (for) now. There are less markets being made because of these absurd moves , ie the sterling move you are referring to and the >100point Eurodollar move that happened in Nov. It's these types of instances that discourage locals from stacking orders in the book. Imagine having resting orders in the outrights or spreads and getting hit and then being immediately faced on even 100 cars. Could be a potential career ender for many people.
the point here would be the fact that they did not bust any trades out. you dont have to trade or try to make money. just work some order within a big figure of the current price. the best one was eurodollars. i know someone who personally made about 900k in $ on that move. in fact of those last four big moves all trades stood. not a bad trading policy really. its bound to happen again next year just as many times. certainly im going to be working orders all year if i can. but can you be that religous to do it every day of every week of every month. also even with the large un announced rate cuts that have taken place the market never moved more than about 50 ticks on the outright if that. so working about a 100 ticks would be ok.
I got a feeling this thread is full of old timers or should i say dinosaurs ready to be extinct. Some guy here is even listening to news and than clicking the buy button. I could be wrong but that is just hunch i have and anger projected here could be very symptomatic.
if you think that then you really dont understand the markets...do some reading stop looking at charts
Sorry about that,this reminded me why i have stopped having discussions here on ET, so maybe in that regard i am not that much different form others here
But can u really live your life like that? constantly moving working orders day in day out waiting/hoping to catch a stop- i very much doubt it
Fuck working the orders. Just have a program throw orders in when the net change is way out of whack. Cover only when they signal no bust though.