How is what banks do with our money market making? - Stocks and ETFs Trading | futures io social day trading
futures io futures trading


How is what banks do with our money market making?
Updated: Views / Replies:409 / 4
Created: by renaissoxx Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

How is what banks do with our money market making?

  #1 (permalink)
Trading Apprentice
atlanta, ga
 
Futures Experience: Master
Platform: Think or swim
Favorite Futures: Stocks
 
Posts: 1 since Oct 2014
Thanks: 0 given, 0 received

How is what banks do with our money market making?

There appears to be no correlation between volume and the magnitude of price movements. The relationship between the two seems to be different on either side until stocks reach a maximum pain point for the outstanding option contracts.

Up .01 on 500k shares traded, down .10 on 5000 shares traded. Stocks warping to a new price due to 50k total shares traded overnight. ETC.

It is easy to fix the price of stocks using high frequency algorithms if you control most of the market's money. It is possible to collude with other big dollar market makers using game theory algorithms or agreeing on strategies directly.

In any case, the theoretical definition of market making should preclude someone from being considered a market maker if they are buying and selling in different amounts thus creating a market where selling or buying an additional share does produce a marginal decrease or increase in price.

The big banks are using public funds to rob the stock market and telling regulators they are "Market Making".

Reply With Quote
 
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
  #3 (permalink)
Trading Apprentice
New Orleans, LA United States
 
Futures Experience: Beginner
Platform: NeuroShell Trader
Favorite Futures: Bitcoin
 
Posts: 12 since Oct 2014
Thanks: 9 given, 13 received


This sounds quite different than the definition of a Market Maker used by the Bitcoin exchanges. To get a Maker's fee instead of having to pay Taker's commission all you have to do is place your limit order within the spread.

I use market orders generally, as the Taker commission is only around 0.2%, but getting paid to be a Maker is pretty nice too.

Reply With Quote
 
  #4 (permalink)
Normal Wizard
Sydney, NSW, Australia
 
Futures Experience: Intermediate
Platform: NinjaTrader with Jigsaw DOM
Favorite Futures: CL, 6E, ES, Piano
 
TickedOff's Avatar
 
Posts: 191 since Nov 2014
Thanks: 163 given, 195 received


CryptoTrader View Post
This sounds quite different than the definition of a Market Maker used by the Bitcoin exchanges. To get a Maker's fee instead of having to pay Taker's commission all you have to do is place your limit order within the spread.

I use market orders generally, as the Taker commission is only around 0.2%, but getting paid to be a Maker is pretty nice too.

I am wondering, why is the market maker getting paid and where is that money coming from? Is it part of the commission bitcoin receives?

Understanding yourself is just as important as understanding markets.
Reply With Quote
 
  #5 (permalink)
Trading Apprentice
New Orleans, LA United States
 
Futures Experience: Beginner
Platform: NeuroShell Trader
Favorite Futures: Bitcoin
 
Posts: 12 since Oct 2014
Thanks: 9 given, 13 received


TickedOff View Post
I am wondering, why is the market maker getting paid and where is that money coming from? Is it part of the commission bitcoin receives?

Basically yes, the exchange is sharing part of the commission they charge for market orders with you for adding liquidity to their platform. Not all exchanges do this, but it's increasingly common.

To clarify, it's part of the commission the EXCHANGE (like OKCoin, BitFinex, BitMX, etc.) charges for trades inside their system.

Bitcoin transaction fees are an entirely different thing. Typically you would pay 0.0001 BTC to transfer money from one wallet to another, regardless of how much is sent. These fees are paid by the sender and received by the miners as payment for adding the transaction to the public blockchain. Eventually (10 - 20 yrs) these fees will be the primary incentive - the source of income - for operating a Bitcoin miner, as the "reward" of newly created bitcoins decreases exponentially to zero.

Reply With Quote

Reply



futures io > > > > How is what banks do with our money market making?

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Linda Bradford Raschke: Reading The Tape

Elite only

Adam Grimes: TBA

Elite only

NinjaTrader: TBA

January

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Are you Making or Losing Money ? LUVtherays Traders Hideout 26 April 17th, 2014 10:27 PM
Options Market Making treydog999 Options on Futures 4 April 5th, 2014 01:26 AM
Big Money Is Making Big Bets on a Housing Rebound Quick Summary News and Current Events 0 December 9th, 2012 01:30 PM
Do you know of anyone making money trading futures ? jram Emini Index Futures Trading 3 January 22nd, 2012 03:41 PM
Derivatives: Bailed-Out Banks Still Making Billions Off Risky Bets Big Mike Traders Hideout 4 October 20th, 2009 03:10 PM


All times are GMT -4. The time now is 07:48 AM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-11 in 0.08 seconds with 19 queries on phoenix via your IP 54.226.132.197