HN commenter, paraphrased: "HFTs pay brokerages money to see non-executed limit orders! That's outrageous." Literally anyone can pay a trivial amount of money to see non-executed limit orders on the order book at a stock exchange, which exists in large part to do exactly this.
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Do people not understand that bids / asks are there as placeholders and not just arbitrary? Hmmm
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I think that almost no generalist technologist, informed member of the public, or financial journalist will succeed on the challenge "Draw an example order book. Any order book."
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People's objection isn't to internalizers seeing your never-executed limit order, but to them seeing your (limit, or market/marketable) order *first*, and being able to trade with it at the expense of the rest of the market.
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The commenter very clearly said that they were worried that HFTs would see resting orders, though they did not use that word.
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Hackernews tends to attract arrogant technologists. You’ll get even more harsher responses with anything to do with crypto.
Thanks. Twitter will use this to make your timeline better. UndoUndo
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There are, in fact, special order types that look a lot like limit orders that do not signal to the market this way. This level of customization is _also_ something people rail against.
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Do you mean Icebergs?
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Hmmm. When I place a limit order, my expectation is that my limit is secret, and I expect the machine to find the best deal within my limit. I certainly don't expect that some people can see the maximum price I have set, at least not without repeatedly incremental offers.
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You don't know what "limit order" means
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While you're still right about how anyone can feasibly access non-executed limit book order data, HFT's still get that information faster than you do because they pay extra for high-performance data feeds with subtle market signals that most investors can't feasibly access.
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Sure they only get it faster by a couple micro-seconds but that's plenty of time for HFT's to (1) Cancel their live orders that are likely be hurt by the market moving and (2) Quickly trading with other live orders in which the counterparty suffers "adverse selection"
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