Don't get me started on mid point trades. We don't even get a...

First 6 Last

Share
Profile

Follow
rocketrog

1,178 Posts.

353

20/06/24

19:23

Post #: 74413926
Share

Originally posted by 2ic ↑

This is just bigger players milking pips on a daily basis over lots of stocks that usually add up to a relatively large profit. The algos are usually momentum following and thus try to buy or sell (depending on the direction they are travelling) either side of the buy-ask spread so they can bank that small spread profit.

This is especially easy and lucrative on average during the open and close auctions, because their computers adjust their bids and asks (usually both at the same time which retail are not allowed to do) in nano-seconds up until the auction cross. The algorithm makes sure that only one share is left over at the bid or ask price so that is the price all trades are priced at. eg, if they are playing a 10c stock long, the algo will be sure to have one share more being sold at 10c than bought at 10.5c so they can scoop up whoever is closing out their positions at 10c not 10.5c. They will then flip whatever shares they bought back out at 10.5c first opportunity and bank ~5% for the effort. Done over many stocks every day on average they steadily accumulate relatively low risk profits...

Sometimes you see two algo's going at it and the price flicking quickly between the buy and ask prices as each bot adjusts their orders in response to the other. ASX will just pocket more fees from more action and tell you it's just 'market makers' adding liquidity for you're own good... no point filing a complaint. Like those invisible 'mid-point' orders only brokers can arrange to jump the queue and get in/out ahead of retail of those not in a hurry. If your ASX trading strategy relies on pips and being quick in and out, I suggest trying a different game because retail won;t do any good bring a knife to a gun fight!

Expand

Don't get me started on mid point trades. We don't even get a look in the action half the day.
Yes, Algo's are permitted because they are said to add liquidity to the market, then the Bot's take the liquidity off market trading mid pips over .
Asx has become a casino for retail investors, controlled by the institutions Algorythms.

DRE Price at posting: 2.4¢ Sentiment: Buy Disclosure: Held
13 Upvote

0 Great analysis

Reply

Top Stories

AIZ

Air New Zealand ditches 2030 emissions targets – right as ASIC's Scope 3 reporting changes kick in for FY25

KSN

Mineral Hill transition kicks off for Kingston, gold and silver ramp up to follow

NWH

NRW Holdings voted Wealth Within's hot stock tip

Super PITch gold sponsor RSM Australia: Can Diggers & Dealers 2024 be key to reinvigorating IPO activity?

MTL

Mantle Minerals' Nick Poll talks to HotCopper on finding gold grades up to 3.57g/t at Mt Berghaus

There are more pages in this discussion • 11 more messages in this thread...

First 6 Last

Add DRE (ASX) to my watchlist

(20min delay)
Last 2.2¢		Change 0.001(2.38%)		Mkt cap ! $76.02M

Open	High	Low	Value	Volume
2.1¢	2.2¢	2.1¢	$19.30K	918.9K

Buyers (Bids)

No.	Vol.	Price($)
10	2643997	2.1¢

Sellers (Offers)

Price($)	Vol.	No.
2.2¢	983668	4

View Market Depth

No.	Vol.	Price($)
10	2643997	0.021
14	7115997	0.020
8	7060894	0.019
5	5662800	0.018
6	3217290	0.017

Price($)	Vol.	No.
0.022	983668	4
0.023	1057951	6
0.024	2363737	9
0.025	1349331	8
0.026	2135000	5

Last trade - 15.35pm 30/07/2024 (20 minute delay)

DRE (ASX) Chart

Don't get me started on mid point trades. We don't even get a...

Air New Zealand ditches 2030 emissions targets – right as ASIC's Scope 3 reporting changes kick in for FY25

Mineral Hill transition kicks off for Kingston, gold and silver ramp up to follow

NRW Holdings voted Wealth Within's hot stock tip

Super PITch gold sponsor RSM Australia: Can Diggers & Dealers 2024 be key to reinvigorating IPO activity?

Mantle Minerals' Nick Poll talks to HotCopper on finding gold grades up to 3.57g/t at Mt Berghaus

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Don't get me started on mid point trades. We don't even get a...

Top Stories

Air New Zealand ditches 2030 emissions targets – right as ASIC's Scope 3 reporting changes kick in for FY25

Mineral Hill transition kicks off for Kingston, gold and silver ramp up to follow

NRW Holdings voted Wealth Within's hot stock tip

Super PITch gold sponsor RSM Australia: Can Diggers & Dealers 2024 be key to reinvigorating IPO activity?

Mantle Minerals' Nick Poll talks to HotCopper on finding gold grades up to 3.57g/t at Mt Berghaus

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News