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JDPriestly

(57,936 posts)

2. Seems to me that the big hedgefunds COULD manipulate the markets

Reply to MindMover (Original post)

Sat Feb 16, 2013, 05:51 AM

Feb 2013

by sometimes buying and selling a lot and sometimes tapering off.

These practices should be illegal.

The companies acknowledge that they are "market making."
I should say so.

I think it would be possible for these fast traders to sculpt a market in which their winnings would be almost certain and the losses of a certain percentage of small investors would be almost equally certain.

Am I wrong?

Couldn't the algorithms be figured so as to amount to manipulating the market?

I realize that there is competition between the fast traders and their various algorithms, but seems to me that these heavy, fast traders could effectively "fix" the markets. It just should not be allowed. It looks like a swindle to me but maybe I don't understand how it works.

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Trading Shares in Milliseconds [View all] MindMover Feb 2013 OP

No, not doing fast trades. We're defeated before we start Warpy Feb 2013 #1

Seems to me that the big hedgefunds COULD manipulate the markets JDPriestly Feb 2013 #2

A Transaction Tax like Europe would eliminate or reduce this graft sfpcjock Feb 2013 #3

They aren't markets ... GeorgeGist Feb 2013 #4