Exactly why would you be willing to accept exposure for 50ms and not longer ? What is the purpose of an order like that ? Unless you're a mental freak you can't think and react in 50ms. I'm not criticizing what you're doing just curious what's happening.
The purpose of an order like that is, as admitted by many HFT traders themselves AND as stated in the OP's link and I re-quote since it was so conveniently ignored by the HFT'ers: "The HFT strategy of placing and then cancelling orders to gain an information advantage". Now forgive me for stating the obvious but that strategy does not indicate by any way shape or form that these orders are genuine bona fida orders to trade, hence making them and every HFT that places these orders "to gain an information advantage" a conman. If as a HFT you have failed to realise this, I'm afraid to tell you.. you are a conman! However, you should be aware that it's only a matter of time that what you are stating here will have to be proved in a court of law to justify your "information advantage". Do any of you think it will stand up in a court of law??? LOL. when it is clear you have to fill a 300 lot order in 2 lot clips to justify your absurd messaging to trade ratio?!??!?!? Why do you do this, if you are indeed genuine?? Why not just clip 300? Why do 150 2 lots??!?!?! To balance out your absurd message to fill ratio ..THAT'S WHY! Only a matter of time before a big court case against you lot occur since what you are doing is so beyond the legality of trading that it would be an open and shut case. Reading this thread I very much doubt HFT's know the basic rules of the exchange at all.
That's exactly how some of the HFT shops operate. First, their infrastructure allows fast access to different trading venues with much lower latency than for ordinary market participants. Further, they know from experience which of the exchnages and block pools a large order is gonna hit first.
WinstonTJ will probably not respond, he was last seen gnawing on a hft competitors cabling with his false teeth.
You must be talking about Investment Banking. Employment time is 2 years for most because they are just well paid grunt labor.
there is another example that i see pretty much every day many times a day.it was mentioned in OP's article too. bluffing.imo-same shit as spoofing. in both cases the party,who submit these orders does not have intention to trade. i place my retail order to sell at ask 100 shares of XYZ in slow market..i'm only a seller at this price..instantaneously another seller appears with selling relatively big order at same price..let's say-1000-5000 shares. you cancel-he's also gone. what they are trying to do is to create an appearance of big seller on your side,pushing you to sell at the bid. try to buy their order-they will be gone long before that. i saw it hundreds of times.hey! you don't have to be genius or come up with some sophisticated algo,if you can do this kind if shit.. i don't really understand,why it's so hard for SEC to spot it and ban those fuckers. imo it's really simple to find out which orders does not have any intention to be filled and submitted only to bluff the real buyers or sellers.
Most of Goldman is investment banking. They may sell complex derivatives instead of arranging M&A but it's a client-facing business with similar working hours. The fact that most such teams also prop trade and often sell their positions to clients when those positions start to smell bad, doesn't change their position in the food chain.