illegal trading methods
I would like to know what are the illegal trading methods
I know most brokers wont allow latency arbitrage and triangular arbitrage
im wondering what other types of methods is banned or considered illegal
if its a genuine ecn/stp, it will never ever ban any trading practices.
How do i know?
I work with Liquidity provider gateways.
I know of one event that happened in options 'fraud' between two brokers.
As it was explained to me there was something like a lag between the two quoting systems and some traders team ended up making Millions.
But it was discovered and they were caught...
Needles to say most of the profits are still missing.
I have mixed feelings about it because it was a flaw in their system, that was successfully exploited by the trading group.
They played a solid game and i felt that these brokers had to take their loss and not blame their misfortune on the traders group.
i know of arbitrage and frontrunning , but i believe there are too much methods in the market that brokers dont yet realise at least small brokers so im trying to figure them out
the markets are very transparent today. Even most dealing-desk brokers nowadays use atleast 1 liquidity connection, otherwise they will get banned by regulators (if they fu*kup & refuse to pay client-profits). Thus, Any unfair/little advantage/loophole that is still left will vanish in the blink of eye.
Its almost impossible to exploit, not even mentioning you have to pay spreads, commissions etc.
So, my bet is, you will never find such a loophole anymore.
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I would like to know what are the illegal trading methods
I know most brokers wont allow latency arbitrage and triangular arbitrage
im wondering what other types of methods is banned or considered illegal