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A comment on Trading bots are running wild on cryptocurrency exchanges. Parent comment

Re:Trading bots are running wild on cryptocurrency exchanges by jijji on Monday April 15, 2019 @06:01PM (#19669307)
A large investment bank Knight Trading would queue orders after the market closes, and then in the morning they had software that would insert their own buy/sell orders based on what was sitting in the queue from the previous night. Doing this they were guaranteed to make a certain amount of profit every day, and from what I was told it was perfectly legal.
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Re:Trading bots are running wild on cryptocurrency exchanges by WalterBright on Monday April 15, 2019 @07:41PM (#19669851)
I never put in trades to be executed at the next opening. One always gets an adverse price that way.
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Re:Trading bots are running wild on cryptocurrency exchanges by dondawest on Monday April 15, 2019 @11:47PM (#19670979)
Is that superstition or is there a logical basis to that strategy?
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Re:Trading bots are running wild on cryptocurrency exchanges by fnord123 on Monday April 15, 2019 @07:14PM (#19669709)
Knight was a market maker, not an investment bank.
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Re:Trading bots are running wild on cryptocurrency exchanges by trickstra on Tuesday April 16, 2019 @01:48AM (#19671405)
does that make it ok?
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Re:Trading bots are running wild on cryptocurrency exchanges by fnord123 on Tuesday April 16, 2019 @03:49AM (#19671867)
A market maker's job is to have orders sitting on the book to provide liquidity to the market.
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Re:Trading bots are running wild on cryptocurrency exchanges by trickstra on Tuesday April 16, 2019 @02:29PM (#19676063)
sure.. but does that mean it's ok if they stuff them with their own orders in a way nobody else can and that gives them guaranteed profit at the expense of others?
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Re:Trading bots are running wild on cryptocurrency exchanges by fnord123 on Tuesday April 16, 2019 @04:05PM (#19676817)
It does. And exchanges and other venues are continually updating to prevent market micro-structure from being able to be easily exploited.
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Re:Trading bots are running wild on cryptocurrency exchanges by auntienomen on Tuesday April 16, 2019 @07:46AM (#19672807)
Whoever told you this was yanking your chain. US equity markets (which is where Knight traded) don't close overnight. Trading volumes get thin, but trades can occur at any time of night. You can't just put an order down and wait till morning.
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