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Showing posts from February, 2015

About making bad decisions

This video by Sydney Finkelstein is excellent. Here is the link: Think Again: Why Good Leaders Make Bad Decisions and How to Keep it from Happening to You Mentioned are four red flags in decision-making: Are your personal experiences misleading you? Is your personal self-interest clouding your thinking? Have you made a dangerous pre-judgment that you are locked into? Are inappropriate attachments pushing you in the wrong direction? These are very good! The tricky part is that to really understand them, you need need to have traveled the multiple sides of the human psyche, which many managers have not. All original content copyright James Litsios, 2015.

Is order spoofing ok?

Spoofing is the act of generating orders to buy or sell something on an electronic market, but to then immediately cancel these orders in order not to trade. Spoofing is used to generate a burst of activity with the hope that it will cause other algorithmic trading systems to react in a sub-optimal manner, allowing the spoofer to follow through with profit making trading activity. Spoofing happens when you enter orders with no intention of letting those orders trade. Which is different from entering orders in to a market and to then cancel them because you have changed your mind. There is no change of mind in spoofing, and therefore it might be seen as a form of deception. Spoofing works because other trading systems are waiting to see certain market prices before they change their behavior. Spoofing can also slow down the market as it may overload the exchange’s network or matching engine, such a slowdown may put at disadvantage other market participants. The question is: is spoofin...