How do HF's deal with liquidity issues?

Discussion in 'Risk Management' started by Xspurt, Apr 26, 2010.

  1. businessstaxes

    businessstaxes Guest

    Major Market Makers like GoldMan Sachs Citigroup Barclays etc and many other brokers with access to FED money are liquidity providers they own the market and always on the other side of the trade. HF are institutional accounts are large accounts and you need to call them to buy sell large quantities. The HF have a account manager at full service brokerage and charge for their service. $100/trade minimum.

    these brokers act like real estate agents or agents that give advice and take orders...that was how things were done before discount online brokerages .

    discount brokerages just take orders and routes them no advice etc.

     
    #11     Apr 27, 2010
  2. Thanks business. It's years since I played stocks and used to do it that way. The broker would work the order all day for me. Just wondering how all the changes with algos had affected this model and how I can both catch up and play smart.
     
    #12     Apr 27, 2010
  3. I thought one method was to buy options.
     
    #13     Apr 27, 2010
  4. F112358

    F112358

    There are 2 rules to live by:

    1. Don't tell everyone everything you know.
    &
    2.

    :p
     
    #14     Apr 27, 2010
  5. Many thanks for those who offered assistance.

    As for the rest, enjoy playing on ET :)
     
    #15     Apr 28, 2010
  6. F112358

    F112358

    You're welcome.
     
    #16     Apr 28, 2010