Making profit using the delay

[regulament]

Ok, this may be a really dumb question, but couldn't somebody make money by using the trading delay for his advantage?

For example, on my broker, the prices are delayed 15 minutes and I can pay for real-time prices.

Now, let's assume that I somehow have 1 account where I have 15 minutes delayed stocks and a friend of mine has an account with real-time stocks.

My fiend could tell me that the X stock was 10$ 15 minutes ago and now it's 11$(a bit of an exaggeration, but bear with me). So, I could buy the stock at my delayed price of 10$, wait 15 minutes and sell it for 1$ profit/share.

What did I missed?

 

[Lord Flasheart]

Ok, this may be a really dumb question, but couldn't somebody make money by using the trading delay for his advantage?

For example, on my broker, the prices are delayed 15 minutes and I can pay for real-time prices.

Now, let's assume that I somehow have 1 account where I have 15 minutes delayed stocks and a friend of mine has an account with real-time stocks.

My fiend could tell me that the X stock was 10$ 15 minutes ago and now it's 11$(a bit of an exaggeration, but bear with me). So, I could buy the stock at my delayed price of 10$, wait 15 minutes and sell it for 1$ profit/share.

What did I missed?

er you missed the fact that your brokers data feed is delayed,not the prices available,and yes its a really dumb question,but weve all been there,good luck

 

[regulament]

I still don't get it.

 

[SonicSunburst]

I still don't get it.

You can't trade delayed prices. If you buy at market you'll be buying the live ask, not the delayed price you see.

My advice, don't trade at all until you've got a grasp of the basics.

 

[Patricia12]

I don't think this technique work. To know why follow above members reply.

 

[Ross Spur]

Ok, this may be a really dumb question, but couldn't somebody make money by using the trading delay for his advantage?

For example, on my broker, the prices are delayed 15 minutes and I can pay for real-time prices.

Now, let's assume that I somehow have 1 account where I have 15 minutes delayed stocks and a friend of mine has an account with real-time stocks.

My fiend could tell me that the X stock was 10$ 15 minutes ago and now it's 11$(a bit of an exaggeration, but bear with me). So, I could buy the stock at my delayed price of 10$, wait 15 minutes and sell it for 1$ profit/share.

What did I missed?

Brilliant idea, and I just wish I'd thought of it, rather than waste years staring at screens all day. Unfortunately, you've made the mistake of telling everyone here first, otherwise you could have sold your strategy for $10k a pop.

 

[Albert Carey]

You can't catch the bus if you are late to arrive at the station just because some guy standing by shows you a video of the bus before leaving the station.

Maybe a better answer for you is that delayed quotes is a video of the past. It is not happening now. You can only trade live quotes.

 

[new_trader]

Ok, this may be a really dumb question, but couldn't somebody make money by using the trading delay for his advantage?

For example, on my broker, the prices are delayed 15 minutes and I can pay for real-time prices.

Now, let's assume that I somehow have 1 account where I have 15 minutes delayed stocks and a friend of mine has an account with real-time stocks.

My fiend could tell me that the X stock was 10$ 15 minutes ago and now it's 11$(a bit of an exaggeration, but bear with me). So, I could buy the stock at my delayed price of 10$, wait 15 minutes and sell it for 1$ profit/share.

What did I missed?

Have you tried it with Bloomberg TV? Record it then wait 15 minutes...etc

 

[regulament]

I get it now. Thanks.

 

[Ross Spur]

I get it now. Thanks.

Unless your real name is Dr Who, you're lucky you didn't try it with real money.

 

[the hare]

I once saw a vendor scalping teh forex with a chat room on pal-talk. He had around 100 muppets all watching a 15 min delayed feed. The excuse he used was he wanted everyone to be looking at the same charts so there where no discrepancies about price or indicator values etc !

Surprisingly for a vendor, he made some really great calls

The temptation to take a quick peek at live prices must have been enormous, but of course he didnt, as that would have been cheating, and instant dismissal from the honourary guild of trading educators and snake oil salesmen.

 

[TheBramble]

This is what I'm, talking about Bunny, enterprising use of gullibility.

 

[coopster]

A mate of mine showed his brother a recording of last weeks lottery draw at the same time the actual draw was going on. He'd bought a ticket with last weeks numbers so of course his brother was convinced they were then winners.

The party was good but the comedown when the reality set in was not pretty.

 

[TheBramble]

That's really quite funny. Evil, but funny.

 

[barjon]

Wasn't there a case some years ago where a wife did the same thing to surprise her husband. When he "won" he promptly announced he was walking out on his wife to enjoy a fresh life with the woman next door.

 

[coopster]

Well the money was indeed life-changing, even though he never had it!