RED 0.00% 34.5¢ red 5 limited

future dividends !, page-31

  1. 541 Posts.
    Cash - there are a few manners of which this can occur, and it does occur over a large portion of the market.

    1. High Frequency trading.

    This was the casue of a 600 point DOW crash in May due to bad algorithm.

    2. Parcel orders.

    Parcel orders can hold the last traded price down by selling small percentages of stock over the course of a day. For instance; 1000 shares held - sell over the course of the day 50 shares at a time.

    The charges for this when it is available on some platforms and brokers are the same as a single trade being made.

    Both tactics can be used to manipulate the market, but at this time they are all above board. Personally I get pretty upset when it is being traded by an algorithm and not by a human. Then again those qualms are debatable and nothing good will come from debating such a thing.

    Liquidated my position on RED yesterday (way too late) after seeing that todays XJO would sink at least 60 points. A technical trade may be in th books but by the looks of things a technical trade right now is a bad idea.
 
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