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by mrfredward 2754 days ago
Which is a nice way of saying you're in a pool of bait for high frequency traders.

...but that's really not so bad. Having an algorithm skim 2 cents/share off of you is a lot better than paying $5+ per trade (assuming you're not trading 1000s of shares, and you're not in penny stocks or options where spreads are big).
1 comments
conistonwater 2754 days ago
It's not a nice way of saying that, the "pool of bait" logic is totally wrong. There's a lot of nonsense written about high frequency trading on the internet, but for example Matt Levine's explanations are completely readable, correct, and on point (see the other comment).
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mrfredward 2748 days ago
If someone will pay to trade with you instead of someone else, you're definitely not getting the best price.
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SirLJ 2754 days ago
There is no free lunch... To paraphrase a friend from high school: "...when you start to play and don't know who the patsy is, usually it's you..." ;-)
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