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70% Of All Stock Market Trades Are Held For An Average Of 11 Seconds

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70% Of All Stock Market Trades Are Held for An Average of 11 SECONDS,

What a great market...

http://www.zerohedge.com/article/70-all-stock-market-trades-are-held-average-11-seconds

The Fourteenth Banker writes today:

In the stock market, program trading dominates volume. I heard recently that 70% of trade positions are held for an average of 11 seconds.

He's correct.

As the New York Times dealbook noted in May:

These are short-term bets. Very short. The founder of Tradebot, in Kansas City, Mo., told students in 2008 that his firm typically held stocks for 11 seconds. Tradebot, one of the biggest high-frequency traders around, had not had a losing day in four years, he said

Similarly, FT's Martin Wheatley pointed out last month:

I know of one HFT firm operated out of the west coast of the US that boasts its average holding period for US equities is 11 seconds

And market analyst Peter Cohan writes at AOL's Daily Finance:

70% of trading volume on the major exchanges is conducted by high-frequency traders who hold a stock for an average of 11 seconds.

The fact that the vast majority of stock market trades are held for 11 seconds shows that the stock market is not a real market with real traders governed by the law of supply and demand, and with no real price discovery.

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And? It's just gambling, everyone knows that. What difference does it make if the position is held for 11 seconds or 11 years?

It sounds like an incredibly efficient market to me.

I have to say I'm also struggling to find the problem here.

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70% Of All Stock Market Trades Are Held for An Average of 11 SECONDS,

What a great market...

http://www.zerohedge...rage-11-seconds

The Fourteenth Banker writes today:

In the stock market, program trading dominates volume. I heard recently that 70% of trade positions are held for an average of 11 seconds.

He's correct.

As the New York Times dealbook noted in May:

These are short-term bets. Very short. The founder of Tradebot, in Kansas City, Mo., told students in 2008 that his firm typically held stocks for 11 seconds. Tradebot, one of the biggest high-frequency traders around, had not had a losing day in four years, he said

Similarly, FT's Martin Wheatley pointed out last month:

I know of one HFT firm operated out of the west coast of the US that boasts its average holding period for US equities is 11 seconds

And market analyst Peter Cohan writes at AOL's Daily Finance:

70% of trading volume on the major exchanges is conducted by high-frequency traders who hold a stock for an average of 11 seconds.

The fact that the vast majority of stock market trades are held for 11 seconds shows that the stock market is not a real market with real traders governed by the law of supply and demand, and with no real price discovery.

1. I'm pretty sure that most stock trading is by pension funds/mutual funds/fund managers not groups of (individual) stock traders.

2. Bond trading is far larger in size than stock trading.

3. Currency trading is far, far larger in size than bond trading.

(I'm not sure about commodities or derivatives trading).

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And? It's just gambling, everyone knows that. What difference does it make if the position is held for 11 seconds or 11 years?

It sounds like an incredibly efficient market to me.

With possible QE2 on the near horizon, sounds like a good bubble to ride.

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Surely the bulk of the stock market is traded by pro traders, using tech systems that enable quick movement?

Non story unless there's more meat on the bone of the actual purpose of the thread.

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I have to say I'm also struggling to find the problem here.

Yes they a providing valuable liquidity but the problem is price discovery is being prevented.

When combined with the below it could lead to immense volatility. They are playing with fire.

ICI%20Cum%20Oct%2020_0.jpg

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I have to say I'm also struggling to find the problem here.

guaranteed $$ for the HFT, net loss for retail?

They are not providing liquidity.

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What good does it do?

It allows small investors the opportunity to buy part of a company who otherwise couldn't afford to take part in the market.

It allows someone who has grown a company to release part of the value and take money out of the business.

Selling shares allows a company to raise capital for research/expansion.

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Surely the bulk of the stock market is traded by pro traders, using tech systems that enable quick movement?

Non story unless there's more meat on the bone of the actual purpose of the thread.

Can you please explain to me what you believe the purpose of the stock market is?

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Can you please explain to me what you believe the purpose of the stock market is?

Its basically a front running scam, and legally dubious, but because the City/Wall street. elite are involved, we will just have to put up with it, as the regulators have been bought!

Lets just stick to bashing the benefit scroungers!

Edited by Sir John Steed

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to trade stocks?:unsure:

Correct, but in this market are you trading true equity?

HFT trading, FED intervention, Naked Shorting (some banks stocks had more shorts placed on them than shares that have been issued), etc.

Enron was a financial crisis and lesson that the financial markets never forgot, it has become the Western Blueprint.

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I know we have a week of October left, and we won't be out of the woods yet, but this big stockmarket crash has been 18 months coming and it ain't happened yet - unless you count the first one as the big one.

We keep hearing about the coming crash from all the doomsters but I do wonder whether we have just bought into a doom mindset and not understanding that, perhaps, QE and the Fed will keep the markets up now no matter what?

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Topic Options 70% Of All Stock Market Trades Are Held For An Average Of 11 Seconds

This is precisely why I proposed that any Tobin Tax should be inversely proportional to the length of time the investment was held (ie instead of a flat rate a Tobin Tax should be a curve, where the closer to duration zero one gets, the closer to 100% tax one gets*).

Quite how holding an asset in seconds fits with layman's understanding of investment is all Greeks to me.

* A function with shape similar to 1/x would suffice. Obviously parameters would need to be agreed and reviewed but the principle is easy enough.

Edited by Dave Spart

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It allows small investors the opportunity to buy part of a company who otherwise couldn't afford to take part in the market.

It allows someone who has grown a company to release part of the value and take money out of the business.

Selling shares allows a company to raise capital for research/expansion.

Ah, so it's like a shared ownership pyramid scheme, artificially inflating capital costs?

Edited by fellow

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This is precisely why I proposed that any Tobin Tax should be inversely proportional to the length of time the investment was held (ie instead of a flat rate a Tobin Tax should be a curve, where the closer to duration zero one gets, the closer to 100% tax one gets*).

Quite how holding an asset in seconds fits with layman's understanding of investment is all Greeks to me.

* A function with shape similar to 1/x would suffice. Obviously parameters would need to be agreed and reviewed but the principle is easy enough.

There is no benefit except to the scammers with fast powerful networks and computers, and access to huge funds and/or leverage.

Its like me knowing the town will want carrots on Saturday, I rush out and buy all the carrots. OK I only own those carrots for 11 seconds, I'm a few quid better off, everyone else is poorer. I'm not providing carrot "liquidity" by ensuring there is a market for carrots, just inserting myself artificially into a transaction.

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There is no benefit except to the scammers with fast powerful networks and computers, and access to huge funds and/or leverage.

Its like me knowing the town will want carrots on Saturday, I rush out and buy all the carrots. OK I only own those carrots for 11 seconds, I'm a few quid better off, everyone else is poorer. I'm not providing carrot "liquidity" by ensuring there is a market for carrots, just inserting myself artificially into a transaction.

So it is basically theft, and is not wealth creating as they would like us to believe, but in fact is the opposite?

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This is precisely why I proposed that any Tobin Tax should be inversely proportional to the length of time the investment was held (ie instead of a flat rate a Tobin Tax should be a curve, where the closer to duration zero one gets, the closer to 100% tax one gets*).

Quite how holding an asset in seconds fits with layman's understanding of investment is all Greeks to me.

* A function with shape similar to 1/x would suffice. Obviously parameters would need to be agreed and reviewed but the principle is easy enough.

How is this useful? It undermines the concept of private property even further, doesn't the state interfere enough already?

Lets just go the whole hog and allow the benevolent state to take all our income and then hand it out fairly, when you've got such a great idea there's no need to stop at half measures.

Edited by Chef

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  • 261 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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