Chapter 9

Identifying the Special Order Types

In This Chapter

arrow Taking a closer look at what makes an order special

arrow Pegging your order

arrow Jumping the queue

arrow Hiding and sliding

This chapter focuses on the most contentious thing in algorithmic and high frequency trading (HFT) – the special order types. Nothing brings about a more heated discussion about HFT than special order types. Some market participants are convinced that these types are unfair and a conspiracy against the investor. Others who support HFT argue that these types are just another form of market evolution that take into account the use of algorithmic trading, improve on market structure and are the best friend of the investor in the form of tighter spreads.

All special order types are derived from the traditional order types. If you aren’t aware of the standard order types, such as at market, limit and iceberg, I suggest that you check out Chapter 8.

Getting a Hold of the Basics of Special Order Types

Special order types have been shrouded in mystery because they tend to be orders that can only be executed via computer ...

Get Dark Pools and High Frequency Trading For Dummies now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.