Thought of sharing this vital information
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This is well known. Only algorithmic traders can benefit from this, if anything … You can’t think and punch orders manually that fast.
Adding to that, why broker can’t share tick by tick data with client on trading platform is because of bandwidth issues, there can be thousands of ticks per second and all that info can’t be transferred via internet, he has given only half information. If one need that data they need to lay a leased line from exchange to their home which can costs lakhs to crores.
Brokers keep their servers at colo to execute trades which are latency driven, not all require it but who does HFTs or few arbitrages uses it. Just not brokers, institutions, HNIs also trade from colocation.
Because of just colo no retailer is at loss except who try to scalp manually or whose strategies are latency sensitive are at a disadvantage. Few advantages colo got for all is it improved liquidity and reduced impact costs.
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So @siva-reddy it’s an undue advantage offcourse coming at a high price to hni, algos and who all are willing to shell more …
But then this occurs which is baffling…
It is fault of few bad apples in the system, not the fault of colocation it self.
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If I know I can try giving my view, I don’t know everything, anyhow what is your query?
how do day traders and HFTs cover their trading costs when they trade on a single tick? do they have their own brokerage cards so that their brokerages come down to zero?
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Enjoy with popcorn… fight of two honchos
HFTs would likely have their own exchange memberships so as to reduce transaction costs (as their buy-sell spread are as low as Rs. 0.10 as mentioned in this article). During the past year, many international HFT firms (Virtu Trading, XTX Securities, and Jump Trading) started operations in India and all have taken up their own exchange memberships (as mentioned in this article). Even other HFT firms that are active in India (like AlphaGrep, Tower Research, Centillion Research, Graviton Research Capital, etc) also have their own exchange memberships. Also, another way these HFT firms might be saving costs is by moving their registered office to Gift City as their is a stamp duty waiver for trading happening via there.
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I placed a sell order on NSE at 9.06 AM for 1000 shares @ 115. there was a matching bid with same quantity n price. but the trade was not executed. why?