Hi folks,
I was hoping my learned friends and chums of T2W could help me with something that I can't get off my chest (for the last few days)...
As most probably know, US brokerages who deal in NASDAQ stocks receive payment from market makers (especially Knight) for the brokers order flow. In other words, Knight will pay a broker to execute their order flow. This means they know where the orders are, gun for them etc...
From my own experiences on a derivatives trading floor, I knew several jobbers (local brokers who also traded their own account) who would give their own orders priority over their customers orders - so they could fade their customers (illegal yes, improbable - NO!)
My rub is this:
A/Does anyone know of regulations that allow US futures brokers to receive payment from market makers for their order books - especially on the GLOBEX/eCBOT platforms????
B/ If so, it would seem down right stupid to enter a stop loss order close to the market, and a mental stop/ market order should be used at all times!
I was hoping my learned friends and chums of T2W could help me with something that I can't get off my chest (for the last few days)...
As most probably know, US brokerages who deal in NASDAQ stocks receive payment from market makers (especially Knight) for the brokers order flow. In other words, Knight will pay a broker to execute their order flow. This means they know where the orders are, gun for them etc...
From my own experiences on a derivatives trading floor, I knew several jobbers (local brokers who also traded their own account) who would give their own orders priority over their customers orders - so they could fade their customers (illegal yes, improbable - NO!)
My rub is this:
A/Does anyone know of regulations that allow US futures brokers to receive payment from market makers for their order books - especially on the GLOBEX/eCBOT platforms????
B/ If so, it would seem down right stupid to enter a stop loss order close to the market, and a mental stop/ market order should be used at all times!