RE: RE: RE: News: WND requests trade reviewBy using instantaneous, computer generated, matching sell and buy orders, the "high frequency traders" can easily move the share price down. They are probing for stop loss orders that we cautious investors put in place to limit our down side. The sell order goes through first and creates a sharp downward spike triggering ordinary investors stop loss limits and freeing up many of our shares.
This can be seen as the bottom of a long black candlestick on the chart. The buy order immediately scoops up the shares at the lowest price. The final movement may only be one cent down but the bottom of that downward spike can be much lower. This is refered to as a "shake out" and the result is that the institution accumulates shares at a major discount to the price most of us are able to see without the fast computer connections available to the big boys.
Is high frequency trading fair? It all depends on which side of the deal you are on. Here in the US, the markets sell direct wired computer links to the High Frequency traders that automaticly give them a fraction of a second advantage on every order. Money talks.
I appreciate Jeff having made this complaint. However it works out, I believe he is on our side.