"Mr. Madhavan estimates that if a market index moves 15% in a day, leveraged ETFs could constitute 75% of all volume at the close of trading"
Wow, that is very intense. I'm not sure how to feel about this. On one hand it gives traders like us opportunities that would have not existed otherwise, and on the other it's creating inefficient, untrustworthy (not to mention deadly) market conditions.
One more thing, I've heard old timers talk about when the ES moved an average of 10 points a day. Can you imagine how trading in that kind of environment? Talk about chop shop.
i don't do drugs. instead, i drink diet dr pepper and coffee. i like beans and rice. and, most importantly, i like trading. someday, i'll probably travel the world. but, right now, i'm poor. this is my blog where i will document my trading activities, and my economic, political, social, philosophical, artistic, blah blah blah opinions. i don't aim to make you any money, and you're an idiot if you take my advice without research. make your own opinions; develop your own perceptions and perspectives. furthermore, this is mine. if you don't like it, you don't have to read it. i'm doing this for myself. stick around and contribute thoughtful arguments to the discussion. or--piss off.
2 comments:
"Mr. Madhavan estimates that if a market index moves 15% in a day, leveraged ETFs could constitute 75% of all volume at the close of trading"
Wow, that is very intense. I'm not sure how to feel about this. On one hand it gives traders like us opportunities that would have not existed otherwise, and on the other it's creating inefficient, untrustworthy (not to mention deadly) market conditions.
:/
One more thing, I've heard old timers talk about when the ES moved an average of 10 points a day. Can you imagine how trading in that kind of environment? Talk about chop shop.
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