pedro01
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OK - so we know that some brokers data mine for your stop loss order to get themselves or their clients a nice fill.
We also know that by placing lots of limit orders outside of the price range, the price can be pulled up or down without placing a trade.
So - how far can data mining go and how prevelant is it ?
For instance, lets say I brought a stock at $53, it is now at $57 and I have a $53 break even stop. My broker can't simply put in a bid of $53 & snatch my stock can they ?
I guess what I am getting at is how far can data mining go ? How far can a price be pulled down in order to take you out.
Also - how prevelant is this data mining ? Does it have to be done by your own broker or can other people data mine stop loss orders that you place at your broker ?
Cheers
Pedro
OK - so we know that some brokers data mine for your stop loss order to get themselves or their clients a nice fill.
We also know that by placing lots of limit orders outside of the price range, the price can be pulled up or down without placing a trade.
So - how far can data mining go and how prevelant is it ?
For instance, lets say I brought a stock at $53, it is now at $57 and I have a $53 break even stop. My broker can't simply put in a bid of $53 & snatch my stock can they ?
I guess what I am getting at is how far can data mining go ? How far can a price be pulled down in order to take you out.
Also - how prevelant is this data mining ? Does it have to be done by your own broker or can other people data mine stop loss orders that you place at your broker ?
Cheers
Pedro