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Comment: Re:Screw The Big Traders (Score 1) 121

by davester666 (#44046257) Attached to: HFT Nothing To Worry About (at Least In Australia)

So, they also do deceptive marketing too, I guess.

Because they never advertise that the big "investment" firms pay extra to put a finger on the balance between the buy and sell price.

And they don't "make" the market, they just game it. Because they constantly offer X, then cancel the order to offer X+-little, even getting to cancel their offer before a 'regular' person gets a chance to accept it.

Comment: Re:competition (Score 1) 294

Yes. One important thing missing: "barriers to entry". Chiefly, cash.

That's why cell phone contract terms are so similar. A few large companies, with a large barrier to entry, no longer really compete on price or even making customers happy [cramming, customer service, long contracts with customer-hostile terms]. Sure there are some small cell companies, but they really have no chance at gaining significant market share.

Gasoline distributors. Same deal.

In cases like these, with just a few large companies and a significant barrier to entry, like infrastructure, they know that everybody makes the most money by setting similar, high prices.

The earth is like a tiny grain of sand, only much, much heavier.

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