Day Trading For Canadians For Dummies 3E – Bryan Borzykowski (1)

Traders use this technique to help buy or sell securities without affecting the price and to reduce trading costs. The order is executed only if someone matches it inadvertently rather than the market price changing to meet the changing supply and demand. The bad news for a day trader is that these trades can contribute to market volatility without giving any advance warning. In Canada, CIRO regulates dark-pool activity under the Universal Market Integrity Rules (UMIR), the Order Protection Rule, and the Dark Liquidity Rule.

When a small order trades against a dark order, it must generally receive at least one tick of price improvement over the best displayed quote. This rule offers some protection for retail investors whose orders interact with hidden liquidity. The trade-off is that large, non-displayed trades can still move prices once they’re executed, adding to volatility without giving any advance signal. For day traders who rely mainly on the visible order book, that means staying alert — the market can shift suddenly when dark-pool trades hit the tape.

Quote stuffing Quote stuffing is the practice of placing a really large number of orders for a security, often at a price significantly above or below the current market price. Almost as soon as the orders are placed, they’re cancelled. The transaction is completely handled by computerized trading systems, not people. The people behind the placement of these orders are sometimes referred to as quote-rate pirates.

The official idea seems to be to hide customer orders in order to reduce their effect on the market, especially to keep them hidden from other computer trading systems, but in practice, these quotes seem to be a way to lead the market up or down by placing an unusually high or low order out there. Hence, quote stuffing may be outright market manipulation.

In some cases, it may simply be that the algorithms in the computer programs place wacky orders for reasons that make sense only to other computer programs. Either way, these orders contribute to market volatility. That may be just the way it goes, unless the orders are placed for nefarious purposes. Regulators aren’t happy with quote stuffing, and it is prohibited — if it’s caught.

To view this book’s Cheat Sheet, simply go to www.dummies.com and search for “Day Trading For Canadians For Dummies Cheat Sheet” in the Search box. Table of Contents Cover Table of Contents Title Page Copyright Introduction About This Book Foolish Assumptions Icons Used in This Book Where to Go from Here Part 1: Day Trading Fundamentals Chapter 1: Doing Day Trading Right Defining Day Trading: It’s All in a Day’s Work Committing to Trading as a Business Identifying the Personality Traits of Successful Day Traders Understanding What Day Trading Is Not Chapter 2: Introducing the Financial Markets Having a Firm Grasp of How Markets Work Opening an Account and Placing an Order Defining the Principles of Successful Day Trading Understanding Risk and Return Differentiating Trading, Investing, and Gambling Managing the Risks of Day Trading Chapter 3: Assets 101: Stocks, Bonds, and Commodities Grasping the Different Things to Trade Defining a Good Day-Trading Asset Taking a Closer Look at Stocks Minding Meme Stocks Examining Bonds Considering Commodities and How They Trade Chapter 4: Assets 102: ETFs, Options, and Derivatives Explaining Exchange-Traded Funds in Plain English Dealing in Derivatives Comprehending Arbitrage and the Law of One Price Chapter 5: Assets 103: Currencies and Crypto Understanding Core Currency Concepts Cashing In with Currency Getting Familiar with Cryptocurrency Chapter 6: Increasing Risk and Potential Return with Short Selling and Leverage Understanding the Magic of Margin The Switch-Up of Short Selling Leveraging All Kinds of Accounts Borrowing in Your Trading Business Assessing Risks and Returns from Short Selling and Leverage Chapter 7: Managing Your Money and Positions Setting Your Earnings Expectations Gaining Advantage with a Money-Management Plan Examining Styles of Money Management Seeing How Money Management Affects Your Return Planning for Your Profits Chapter 8: Planning Your Trades and Trading Your Plans Starting to Plan Your Trades: Just the Basics, Please Closing Out Your Position Understanding Maxims and Clichés That Guide and Mislead Traders Part 2: Developing Your Strategy Chapter 9: Picture This: Technical Analysis Comparing Research Techniques Used in Day Trading Using Technical Analysis Reading the Charts Considering Different Approaches to Technical Analysis Avoiding Technical-Analysis Pitfalls Chapter 10: Following Market Indicators and Tried- and-True Day-Trading Strategies Psyching Out the Markets Taking the Temperature of the Market Measuring Money Flows Considering Information That Crops Up during the Trading Day Identifying Anomalies and Traps Chapter 11: AI or DIY: Eliminating Emotion with Program Trading Creating Your Own Trading Program Adding AI to the Mix Programming Your Day Trading Building on Some Standard Strategies Arbitraging for Fun …

This is a short excerpt from the opening of “” by Unknown, quoted for review and introduction purposes. All rights belong to the copyright holders.

Book Information

• Unique ID: 3b3e467e71b05ec5
• File Extension: .pdf
• File Size: 5,700,071 bytes (5.436 MB)
• Title: –
• Author: Unknown
• ISBN: 9781394388837, 9781394388844, 9781394388851, 3175723993
• Pages: 536
• Language: English (en)

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