Tiny trades.. stupidity or strategy?

Jimmy001 · 9 January 2007

Hi all,

I've been seeing a few times where someone had bought or sold a handful of shares that amount to less than what brokerage would have been.. (e.g. someone bought a whole two shares today in Alinta at 12.52 each ).

Is it just the odd typo that causes it or is there some strategy to try to alter price or volume or something?

Can anyone share any other tricks they know of that people use to manipulate the market?

watsonc · 9 January 2007

An example would be someone put in an order for 2000 shares, and only 1998 went through (got sold at the time). So there are 2 shares left sitting by themselves in the buy column.

The remaining 2 shares will later be sold and the buy order completed.

stickman · 9 January 2007

Jimmy001 said:
Hi all,

I've been seeing a few times where someone had bought or sold a handful of shares that amount to less than what brokerage would have been.. (e.g. someone bought a whole two shares today in Alinta at 12.52 each ).

Is it just the odd typo that causes it or is there some strategy to try to alter price or volume or something?

Can anyone share any other tricks they know of that people use to manipulate the market?

Hi, it's robot trading.

cheers

stickman · 9 January 2007

stickman said:
Hi, it's robot trading.

cheers

Hi Guys have a read here:

http://www.businessweek.com/magazine/content/05_16/b3929113_mz020.htm

cheers

nizar · 9 January 2007

stickman said:
Hi, it's robot trading.

cheers

Exactly.
Bot trading done by instos/brokers ie. they dont pay brokerage.

Can work to buy up a stock before dumping a large parcel or to dump a stock continuously then pick up cheapies.

Instos are never wrong. When they are, they just flood the market to force things to flow in their directions. Unless of course, they are up against Pros like YT!

spitrader1 · 9 January 2007

Jimmy001 said:
Hi all,

I've been seeing a few times where someone had bought or sold a handful of shares that amount to less than what brokerage would have been.. (e.g. someone bought a whole two shares today in Alinta at 12.52 each ).

Is it just the odd typo that causes it or is there some strategy to try to alter price or volume or something?

Can anyone share any other tricks they know of that people use to manipulate the market?

99% of the time its insto arb trading-ie traders who trade the spread between the cash and the futures, and do so over the top 200 or top 100 whatever they feel like that the time.

spitrader1 · 9 January 2007

spitrader1 said:
99% of the time its insto arb trading-ie traders who trade the spread between the cash and the futures, and do so over the top 200 or top 100 whatever they feel like that the time.

id also like to add that its also 99% of the time nothing suspicious.

Tiny trades.. stupidity or strategy?

Jimmy001

watsonc

stickman

stickman

nizar

spitrader1

spitrader1

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