Friday 6 May 2011

CNBC - Silver High Frequency Trading Unsustainable! 5/5/2011


High Frequency Trading in the silver market .The paper games days are numbered too fast and it's just unsustainable for the markets to even control


Separating speculation from supply and demand, with Daniel Fisher, MBF Trading. . Daniel Fisher : this is so fast and so ridiculous, it's -- i can't even fathom these markets because when you watch silver move during the day, even if you're on the right side of the trade, the speed at which it's going on, it's unfathomable. i mean, the truth is these moves down, the corrections are all so overexaggerated by all the high frequency trading that ifru just slowed down we wouldn't see oil down 10 bucks today, wouldn't see brent trading down, you know, down below. Daniel, it's joe. when you talk about high frequently trading in the commodities space, people know about high frequency trading and stocks. how does it work in the futures mark? i mean, it's a similar deal. you have computers that are running each other in essentially. bidding and offering at the same time and they know when the large orders are coming so when you see a big sale in oil coming in, 100 lots, computers know they are coming and they essentially front run the order, and they front run each other and just run each other in. it's too fast and it's just unsustainable for the markets to even control.




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