009: Peter Zhang – Into the Mechanics of Financial Markets with a Street Smart Hedge Fund Operator
Chat With Traders
00:00
Selling the Flow
When you shoot your order down through this rouder, it flashes to everybody what your intentions are. This market maker can essentially look at flow and say, do i or do i not want to trade against it? And if all of them say no, they will wait till the price moves so it goes in their favour that they can flip it for a spread. When markets are moving fast, it's really important that you're able to get the best fill - when you want to buy at a hundred, you'd better get filled at a hundred. If you don't, most likely you're going to make a stupid mistake and chase the name too high.
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