Re:The Higher States of Bromine
by edoo on Sunday December 15, 2019 @06:20PM
(#21799671)
It is illegal to offer a security for sale that you have no intention of selling. I'm pretty sure the way they make money is to flash out orders and see if there is a response for the now unavailable security, allowing them pricing signals they wouldn't otherwise have. The basic solutions people offer are often of the theme "require the order to live long enough for others to actually trade on it".
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> I'm pretty sure the way they make money is to flash out orders and see if there is a response for the now unavailable security
No.
Market event A is seen to correlate strongly with market event B. The correlation is so obvious that multiple participants compete to make the B trade first in reaction to A. It's part of having a healthy market, electronic or otherwise.