PropTrading Question

Discussion in 'Trading' started by marwanco, Dec 5, 2010.

  1. marwanco


    Hi All,
    I watched the following video, and what to ask what type of trading the guy is doing, I notice he has orders on both sides, bid and ask.
    Is this the credit trading? what is the requirement.

    Thank you for your time.

  2. He is scalping half and quarter ticks by picking up liquidity inside the spread. Are there any sterling users who can comment if the net is with or without fees, cause while anyone with the right orders can do this its just the commissions will eat any profit. Would be interesting to know.
  3. marwanco


    For example there are orders on different price level,like

    Buy long at 4.14 1000shares
    Buy Long at 4.13 1000
    and so on until 4.04 1000

    What will happen if the price will go down very fast to 4.04?
    In my understanding you endup with 10000 shares, and a loosing trade.

    I noticed he used very thick stock, so this may not happen.

    Also noticed The P/L was increasing by one dollar.Still interesting to know the excact
  4. He only has those orders out so he is near the front if the price does move. If it moves hard he will cancel those orders. He gets a fill and then puts out a ARCA midpoint match or other similar order which then fills inside the spread. You need access to those type of orders in order to do this.
  5. i think you can only do these kind of trades on price acceleration.