High Frequency Trading, Liqudity Providers, Tight Spreads, and SPY Spikes.
Submitted by malusDiaz on 04/09/2010 10:59 -0400
I only have 1 question:
If High Frequency Trading provides Liquidity, then WHY are there Spikes on SPY?
If you sell far below the prevaling price, it sells at that price, and if you buy far above the prevaling price, you buy at that price...
With the theory of the Tight Bid-Ask Spread, this should NEVER happen. ESPECIALLY for limit orders.
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