What makes you think that these are the flipper? There are much bigger players in the market than that guy (what about normal customer orders from hedge funds and banks?)
If not THE flipper then A flipper. Consistent size, 3,000-5,000 cars, the fact that they appear and vanish quickly, sometimes showing up in equal size on the opposite side seconds later. Paper would show up on one side only, and anyone actually wanting to sell 5,000 Bund wouldn't just drop 1,000 each 5 deep on the offer and let them sit there. This guy does.
I know of a hedge fund trader who burned these flippers earlier this year. He had big orders to do and traded 300-600 lots to look like a local, he'd let the flipper build up 4 prices of 4000 lot spoofs lulling him into thinking he was squeezing them out. Then the fund would fill their true order in one clip. To get your 12,000 bund business done in 3 ticks got clients very happy. The flipper seemed to have a rethink after a few of those and is nowhere near as flippy as he used to be. In fact it took along time for that size to be shown again. I don't know anyone who clips 3000 bunds I work with but 3 clip 2000 and they are not flippers. I don't see how you can nail this action on one bloke.
Seems like whoever is flipping the market has been VERY active this week, so could you give your mate at the hedge fund a call and ask him to do some more bunds? Never thought that the parties involved would last this long, thought a bank of hedge fund would have taken them out long ago. But thinking realistically, it is in their interest to have someone showing massive size bids and offers for them to hit, so really why would they? FGBS
Well some of the flippers run their own hedge fund - funded by flipping. So you can hedge yourself against it by investing with them http://www.rotterinvest.com I entirely agree with your second comment. They bait them out in the open to get them fully exposed and then club them over the head in one swoop. It's all about one big clip. Take them in portions and they'll dissappear...
Any idea how the Flipper makes a profit? What is he trying to accomplish? Why do you call him a flipper? Pardon my ignorance.
Anyone notice the amazingly played out flipper move between 9:48 starting at 114.94 in the bobl until just after 10:00? Class act, seriously hats off to the guy, but seems that these type of plays are becoming a little bit more predictable than they used to be... FGBS
Have you ever watched the market depth in Bund/Bobl/Schatz and co-insided them with a trade recap? You see that sometimes there are big offers or bids that get turned (flipped) without being traded. Because of the fact that there are so many local traders doing large size in these products, if there is no paper it is a great strategy (if you are large enough) to just put them offside (is a lot more difficult than it sounds) and counter trade their trades: they make a loss, you make a profit. Very simplified this is approximately what happens. GLUCK ALL! FGBS