Categories

Latest Market News

Tools

  • Economy & Politics
  • Investing
  • Personal Finance
  • Related Posts


    How Digital Currency Could Transform Our Lives
    Is The U.S. Stock Market Unhealthy?
    122 Tonnes Of Gold Secretly Repatriated To Netherlands
    Swiss Gold Initiative: Good Idea With Unintended Consequences
    The Massively Crowded ‘Long-USD, Short-Treasuries’ Trade Just Got Crowded-er
    This Investment Will Suffer From A Major Chinese Move
    GoDaddy IPO Is One To Avoid In 2015
    The Five Best Penny Stocks To Buy For 2015
    Silver Prices In 2014 Driven By These Two Factors
    Some Fund Managers See Oil Falling To $60 Without OPEC Cut
    Stock Futures Point To Higher Open On Merger Activity
    China Corruption Watchdog Launches Inspections, Eyes Sinopec
    Carlyle Seeking $5 Billion For Fund With Longer Life
    RenaissanceRe To Buy Platinum Underwriters For $1.9 Billion
    Visteon Eyes $3.6 Billion Sale Of South Korean Unit


    How High-Frequency Traders Use Dark Pools To Cheat Investors

    High-frequency trading (HFT) has an evil cousin: dark pools.

    While dark pools are not inherently bad, the abuse of dark pools by high-frequency traders has made it easier to exploit everyone else in the market, and increases the odds that a market downturn could quickly become a stock market crash.

    So what are “dark pools,” anyway?

    Dark pools are off-exchange platforms that allow large investors, such as hedge funds and pension funds, to trade stocks anonymously. Dark pools arose in the late 1990s from a desire by these big players to conduct large-scale trades without tipping their hand.

    Dark pools allow large investors to establish or exit positions in a stock at the best possible price. There was nothing wrong with that; the dark pools made up a very small portion of daily volume and made it easier for big investors to trade.

    Click to read the full story

    Discuss this Story:

    Comment Policy: We encourage open discussion. Comments including racist statements, profanity, name calling or spam will be removed at our discretion. We use filters for spam protection. If your comment does not appear it is likely because it violates the policy.

    Brace Yourself For A Below-average Christmas
    Three Portfolio Moves To Boost Your Sex Drive
    BioMarin To Buy Prosensa In $840 Million Deal
    Fashion Chain Gap In Deal With Online Retailer Zalando
    Futures Higher, Building On Recent Gains
    Tesla Says In Talks With BMW Over Car Batteries, Parts
    Aviva Shares Fall, Friends Life Jumps 7 Percent On Merger News
    Global Stocks Grind Higher After Central Bank Stimulus Signals
    Fund Boards, Management Go On High Alert Around Bond Liquidity
    Apple Launches Massive Two-week (RED) Campaign
    Cutting The Cord: A New Move From Verizon
    How Retailers Are Using Tech For The Holidays
    Gold Is Cheap. Is That Good?
    Bill Dudley Explains Why The New York Fed Is Not A Subsidiary Of Goldman Sachs
    The S&P’s GAAP P/E Ratio Rises Above 19X
    Goldman’s Two-Word Summary Of The PBOC Rate Cut: “Slightly Useful”
    Gold Repatriation Stunner: Dutch Central Bank Secretly Withdrew 122 Tons Of Gold From The New York Fed
    Gold Tops $1200 As China Cuts, Draghi Jawbones
    Shocking Pictures Of A Russian Potash Mine Disaster
    Wall Street Stunned As Iceland Dares To Jail Banker Involved In 2008 Crash
    Stability Vs Opportunity
    3 Things Worth Thinking About
    Now You Can Download Wall Street’s Favorite Networking Tool
    The World’s Oldest Monopoly Is Finally Coming To An End
    The Return Of The Dollar
    SpareChair Aims To Become The Airbnb Of Coworking
    Nutanix Beating EMC By Cutting Customer IT Costs 62%
    10 Companies Smack Down Wall St. Analysts
    Apple’s New Barrier: $118.54
    Banks Defend Their Commodities Activity
    Read more from Investing...

    Liberty Investor Digest

    Get today's most important
    financial headlines all in
    one place by email!



    Sources


    close[X]

    Sign Up For Liberty Investor Digest™!

    Get Liberty Investor Digest FREE By Email!

    Input your name and email address in the fields below and get today's most important financial headlines sent straight to you inbox!

    Privacy PolicyYou can opt-out at any time. We protect your information like a mother hen. We will not sell or rent your email address to anyone for any reason.