Q&A by Don Bright
REVERSING THE NEGATIVE EFFECTS
Mr. Bright, thanks for your column, I read it every month, it really helps. A while back I read about how some of your traders have taken advantage of what seemed to be a negative situation. High-frequency and subpenny trades take place with more frequency these days, and I think you said something about how to reverse the negative effects. Could you possibly go into that again, please? —coyotejk
Sure, let’s start with a quick review of what we’re addressing. Automated computer programs can and do send in high-frequency trading orders in subpenny increments. The guise is that they may offer some price improvement to the other side of the order. Much has been analyzed about the pros and cons of this type of trading. I suggest you check out www.defendtrading.com for background and continuing information about these very important aspects to trading these days.