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681390 No.681390 [Reply] [Original]

Do stock prices rise and fall from completed orders or placed orders?

>> No.681400

The NBBO moves on placed orders. The last price moves on filled orders.

The price could $18 but the bid could be $17.80 and the ask $17.83. So you know the stock is going down unless the NBBO goes higher before a fill. Usually see this type of spread in pre/post market.

>> No.681403

Placed. Thats why super fast Computer shit can try out the markets reaction

>> No.681416

>>681403
Isn't that market manipulation?

>> No.681746

>>681416
Automated trading: placing orders and cancelling them all under 0.001 seconds.
other super computers analyse that and also compete vs humans.
its preety fucked up

>> No.681751

>>681403
>>681416
>>681746
Two Norwegians were sued by some trading company after they figured out a way to trick their trading bot to give them free money.
http://www.aftenposten.no/okonomi/Investorer-lurte-aksjerobot_-ble-frikjent-av-Hoyesterett-6819044.html
Supreme court eventually acquitted them.

>> No.681756

>>681746
Yeah, its illegal. It is market manipulation.

>> No.681761

>>681746
>Automated trading: placing orders and cancelling them
This was actually what the guys tricking the bot did here >>681751
They placed buy orders then immediately canceled them then got the bot to buy stock at this new price.

What if a computer engineer designs these bots with an intentional hidden flaw then exploits that flaw once big companies starts using the bot?
Could be a cool movie.

>> No.681777

>>681761
It's reality. Seriously if you know programing, you can program your TradeStation to buy, short-sell, issue call, issue put, based on what it analyses.
Say, if the growth rate at which the stock moves is -, -, -, -, ++ you can tell it hit a botom and is bouncing up. Program the bot to have it calculate all possibilities within that time frame for 100+stocks, predict to the computer's very best estimate, have it take the most profitable route every 15-30mins to minimize transaction costs, and you literally have a money making machine.
if you screw up tho it might keep losing money without it even realizing it. Thats why programers are more and more needed in walstreet