"THE MARKET... consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Alexander Elder

Friday, February 15, 2013

"Gee.. if she can do it..."

see: Priming the Pump

1 comment:

Charles Longfellow said...

The broker exists between the trades. Between the trader and the sub-market, or mini-market that is partitioned off, (often very small), the broker trades against the daytrader. The trades never need make it to a fictional level playing field. Trades are held for fractions of seconds and then manipulated by high frequency algorithms to pretend a market. The only way to even hope for better as a trader is to go further out in days or weeks, and even then there are both targeted and random false moves. Now if she is making money, that can be a manipulated thing in the same way. Maybe she believes she is a successful trader. The market needs new money. If she didn't exist, we would have to invent her.

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What is a Bucket Shop?

"Bucket Shop is a specifically defined term under the criminal law of many states in the United States which make it a crime to operate a bucket shop. [2] Typically the criminal law definition refers to an operation in which the customer is sold what is supposed to be a derivative interest in a security or commodity future, but there is no transaction made on any exchange. The transaction goes 'in the bucket' and is never executed. Without an actual underlying transaction, the customer is betting against the bucket shop operator, not participating in the market."
see: Wikipedia

The SEC believes that "internalization" is somehow different, and this affects ALL of your online trading, no matter what you are trading. Trades that are executed outside of the exchange, never reaching the main market, effectively hide data from technical analysis, and skew pricing.
see: Not a bucket?

"... internalization hurts retail customers and market quality"

see: EconPapers

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