While CFD trading with MF Global in UK, I had very little success and looked for possible reasons. I analsyse the FTSE 350 with my own system and had the benefit of MFG's own Dierct Market Access platform. With different CFD companies, I have been trading, off and on, for four years. Recently, it became apparent that automated computer trading was dominating the order book. In liquid shares, a price would be steady for a few minutes, then a flurry of trading so fast, it was impossible to see what happened and my price would be pushed down the order, despite being the best price on submiting the order.
I studied the process, making notes of orders and volumes. An instance arose where the flurry was very short. At the top of the buy side were three orders: 500, 1732, 800, each differing by one tick. During the quiet period, I noted the latest total volume. After the flurry of activity, the total volume was exactly 1732 shares greater, but both the 500 and 800 orders had disappeared.
While it is quite permissible to withdraw orders from below the top price, in this case the top price itself had been pulled. This, in my view, is fraudulent. With computers installed, literally, in the LSE building to achieve microsecond speeds, they can move or distort the price spread without trading. So what is the point of an order book? It is no longer, first come - first served.
Has anybody had a similar experience? Provide a differemt take?
Or willing to repeat my experience?
I studied the process, making notes of orders and volumes. An instance arose where the flurry was very short. At the top of the buy side were three orders: 500, 1732, 800, each differing by one tick. During the quiet period, I noted the latest total volume. After the flurry of activity, the total volume was exactly 1732 shares greater, but both the 500 and 800 orders had disappeared.
While it is quite permissible to withdraw orders from below the top price, in this case the top price itself had been pulled. This, in my view, is fraudulent. With computers installed, literally, in the LSE building to achieve microsecond speeds, they can move or distort the price spread without trading. So what is the point of an order book? It is no longer, first come - first served.
Has anybody had a similar experience? Provide a differemt take?
Or willing to repeat my experience?
