In This Chapter
Looking out for high frequency strategies
Following the trading book
Gaining market intelligence
The more insight you have into how dark pools and high frequency trading (HFT) affect the securities that you’re trading and what your broker is doing with dark pools, the higher your chances for getting a better price for your trade. This chapter gives you ten easy tips to help you to protect yourself when planning on placing a trade.
When you decide to make a trade in a specific stock, keep an eye on the spread – not just for a few minutes before you place your order, but well in advance. Pay close attention to the bid offer spread for days and even weeks in advance. Know what the average spread is and whether any situations occur when it’s wider or narrower than the average.