Well the stock market is now so corrupted what does it matter,...

First 73617 Last

Share
Profile

Follow
kingpins

25,363 Posts.

29

20/10/21

18:01

Post #: 56946743
Share

Originally posted by cara ↑

strat wrote thus on the OEL thread...may help....

Some years back was involved in a discussion that one guy brought the ASX into. This was their response to "Bot trading".

Dear XXXXX,

Thank you for your email. Having reviewed the course of sales data for CNP for 26 February it appears the trades you are referring to, are the result of DMA (Direct Market Access) or algorithmic trading.

You may be aware that DMA trading allows a client to send orders directly onto a trading platform without human intervention. One form of DMA trading involves a strategy to match the volume weighted average price (VWAP) for a stock over a day.
As a means of capturing the VWAP, a single order might be split up into several smaller orders which are submitted periodically (every 3 minutes for example).

This type of DMA trading is normally unremarkable and has no impact on the price or volume of a stock. However, occasionally market observers may see small volume orders being submitted to a trading platform in a less liquid stock which result in small volume trades.

Surveillance monitors DMA trading and expects brokers to have in place appropriate mechanisms to ensure that such trading is not manipulative.

DMA trading is an increasingly popular means of trading, particularly when a participant seeks to track VWAP or 'slice and dice' an order for other purposes. Further details and articles regarding DMA trading can be found by searching under "DMA Trading" on the ASX website.

Expand

Well the stock market is now so corrupted what does it matter, after all it only disadvantages the mum and dad trader who only represent a small part of the market

I think that it is an important part as it is vocal and can have a bigger effect than the size of that group has but ----who cares!
3 Upvote

Reply