jump in front of someone

Discussion in 'Order Execution' started by Javier, Jan 8, 2015.

  1. Javier

    Javier

    It is said that when you bid your shares, someone can jump in front of you; looking at the order book.. how can I know that that happened? I wish to cut that bid in order to eliminate the risk of not being filled.

    Tx
     
    Last edited by a moderator: Jan 8, 2015
  2. Occam

    Occam

    If you're talking about equities, there are various ways for certain big/powerful players to do this, depending on what country you're talking about. In the US, this can be done through "broker/dealer internalization", which is explained here: http://www.zerohedge.com/article/in...-broken-market-nanex-conclusively-proves-hfts, amongst other places. In Canada, a broker (probably working with an HFT) can do this through a loophole called "broker prefrencing" or "broker priority", which IEX is trying to bring to the US, unfortunately.
     
  3. Javier

    Javier

    Tx men. Now i understand what are they doing more or less, i saw that behaviour before lol, i though my order book didnt worked property. Tx you very much,.