HR3555 Could Grant Immunity to Exchanges & Dark Pools

A new bill was just introduced by Representative Loudermilk (R-GA), which would  amend the Securities and Exchange Act of 1934 to basically reduce or eliminate regulation overreach into business models of exchanges that do not involve either reporting or effecting a transaction on the exchange.  As Representative Loudermilk put it…

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How Long Can the Market Sustain its Low Volatility?

online trading broker

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,…

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Why You Should Dump Your Online Broker

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…

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Take Control of Orders with Superior Prop Trading Firm

Take Control of Your Orders

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.

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Latency Arbitrage with Predatory Algorithm for 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…

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Day Trading Guide to Stock Order Types

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…

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Top on Trader’s Wish List – Limit Payment for Order Flow

payment for order flow

History After speaking with several experienced traders, one thing stands out as top of their wish list: limits on payments for order flow.  Payment for order flow (POF) is a widespread arrangement, and one that’s been around in US Markets for quite some time.  In fact, this practice dates back…

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