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…)
A day trading guide on stock order types is a dynamic volume, as new order types are continuously proposed, revoked or falsely justified. As Nasdaq continues to develop, propose, then either revoke or justify new stock order types that continually benefit the select few, let’s review some of these recent order proposals and how they impact investors.
Nasdaq’s Proposal of the Extended Life Priority Order
Nasdaq proposed in November of 2016 a new order type they call the Extended Life Priority Order (ELO). This was shortly after the SEC gave approval for IEX to become the 13th US Stock Exchange. The ELO order type has been incorrectly compared to utilizing a time delay similar to IEX’s “speed bump”. (more…)
How Rising Costs of Stock Exchange Data Fees Affect Online Equity Trading
There is a lot of talk about the data access fees that the various stock exchanges are imposing upon brokers, traders and online equity trading firms, and for very good reason. All US Stock Exchanges, including the two largest in the world, the New York Stock Exchange (NYSE) and Nasdaq, provide market data through the Securities Information Processor (SIP), as is required by the Securities Exchange Act, for consolidation of displaying current pricing and securities activity. (more…)
IEX – The Investors Exchange
IEX, also known as The Investors Exchange, was given final approval by the Securities and Exchange Commission in June of 2016 to become the thirteenth stock exchange in the United States. IEX was originally formed as an Alternative Trading System, or a dark pool, in October of 2013 and continues to utilize the same technology as an exchange to level the playing field for all traders. IEX is the first exchange to offer a transparent environment for day traders and high frequency traders (HFT’s) alike. Day traders have historically been at the mercy of HFTs, whose trading accounts for 50% of all market trades. (more…)