by greatpoint | Sep 5, 2017 | Proprietary Trading
Volatility in the stock market has a direct impact on stock performance and annualized returns. Historically, when market performance is positive, volatility will tend to decline. Conversely with higher volatility, investors experience greater risk, while the market sees a decrease in returns. With the current calmness of the stock market, we have to wonder how long the market will sustain its low volatility, and when we should be concerned. (more…)
by greatpoint | Aug 2, 2017 | Proprietary Trading
Once you understand the very important differences between online brokers and professional trading firms, you will realize why you should dump your online broker!
Online brokers such as Ameritrade, ScotTrade, Fidelity and many others are the gateway to the stock market for most people. For savvy investors with larger balances or an active trading style, however, there are definitely better options that you should be aware of.
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by greatpoint | Jul 6, 2017 | Proprietary Trading
We have discussed Payment for Order Flow (POF) and how High Frequency Trading (HFT) firms make money on your trades. We’ve shared how Maker-Taker affects the way that trades are executed. Now let’s see what you can do to improve your trading returns within this complex and often predatory environment. (more…)
by greatpoint | Jun 5, 2017 | Proprietary Trading
As any reputable online trading broker would agree, the Maker-Taker pricing model can distort the market and alter the way market participants transact stock orders. Maker-Taker refers to a pricing model that exists in most exchanges, to encourage stock liquidity in their venue. (more…)
by greatpoint | May 9, 2017 | Proprietary Trading
Latency arbitrage is the practice of one party, perhaps a predatory HFT firm, exploiting a time disparity and earning profits with a computer algorithm for trading, when that trade is executed solely because of a latency advantage. Latency arbitrage has raised many heated discussions among all market participants, the SEC and government law makers for many years, yet this unfair unequal access to US equity markets is still the main strategy of many predatory firms.
Let’s take a look at what exactly latency arbitrage means, why it occurs, and what we can do about it. (more…)
