Fraud: Broker kind of "frontruns" client order. Reporting to SEC?

Discussion in 'Retail Brokers' started by thecoder, Nov 26, 2021.

  1. GotherL

    GotherL

    Well in that case, if it was really a scam or as you say it is. Someone would've reported to SEC already.

    How do you know it was your broker sending the order for .30 and not another retail trader who hit .30 before your order?
     
    Last edited: Nov 26, 2021
    #21     Nov 26, 2021
  2. thecoder

    thecoder

    That's easy to explain: if it were another trader, then my Bid would be higher than his Bid, so at top of the orderbook my Bid would be there instead of his Bid...
    The scam works only if the broker of the client intercepts and replaces the order...
     
    #22     Nov 26, 2021
  3. GotherL

    GotherL

    I don't think just because you've a higher bid on an option you have priority over execution. I don't think that's how it works for options.

    For example, often I put a limit bid at .99 and I see the last price flash to .96. Someone bid lower and got filled before me.

    So in this case, you threw limit order at .35 and someone sold at .30 and filled the .30 buyer. Simple as that....
     
    Last edited: Nov 26, 2021
    #23     Nov 26, 2021
  4. ajacobson

    ajacobson

    Linkage wouldn't allow that unless it's a conditional order. How many venues are this option traded on? As I said the entire thing sounds like Bullshit. A "firm" order would kick out. Untouched by human interaction. Either a material omission of fact or Bullshit.
     
    #24     Nov 26, 2021
  5. thecoder

    thecoder

    I guess the broker does it on select clients, on those whom it thinks are beginners and won't detect the fraud...
     
    #25     Nov 26, 2021
    nooby_mcnoob likes this.
  6. Someone has to be the first to notice. At least 3 people on this thread have noticed, I've never seen anyone else talk about this. It is possible this is the first time retail people have talked about it with others.
     
    #26     Nov 26, 2021
    thecoder likes this.
  7. thecoder

    thecoder

    Really? :)

    That's indeed similar to my case. But you think it's ok, whereas I think it's not ok.
    Of course assuming this is a Bid for a Long trade, and not for a Short trade.
     
    Last edited: Nov 26, 2021
    #27     Nov 26, 2021
  8. GotherL

    GotherL

    That's just how it works for options.

    There has to be a buyer/seller for each matching price. Even if you fat finger and put an order to buy at $1000 a contract if nobody was selling at $1000 it won't get filled.
     
    Last edited: Nov 26, 2021
    #28     Nov 26, 2021
  9. ajacobson

    ajacobson

    Three people on an anonymous forum. Is easily a feeding frenzy of folks who aren't aware of how markets and safeguards work. Whistleblower rewards anyone? No just flame them on Real Traders. Everyone here has ghosts in their closet and under their beds.
     
    #29     Nov 26, 2021
  10. thecoder

    thecoder

    It would be interesting to know why GotherL and ajacobson are siding with the brokers?... :)
    Are they somehow involved in this? :)

    @GotherL, please stop spreading false information about how the orderbook functions, it's embarrassing.
     
    #30     Nov 26, 2021