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Themis Trading
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Ain't Gonna Be No Bitcoin ETF

In this reposted bog from Themis Trading, the authors write that sometimes investors need to be protected from themselves - starting with the Bitcoin ETF.

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Managing Toxicity in the Dark

One word you hear a lot when discussing Dark Pools is "toxicity, but does it really  mean to say a dark pool is toxic? Does this type of activity only happen in dark pools? Watch this video for answers to these questions and learn how you can avoid toxicity. For more information, visit www.bloombergtradebook.com

Q&A

Q: How is toxicity measured?

A: Toxicity is typically tracked as a negative price movement a couple of seconds after a trade (or fill) happens. By that measure any trading activity typically results in some sort of market impact. Brokers should provide clients with periodic reports on toxicity by venue for their orders.

Q: How can lit venues have toxicity?

A: This happens in all venues including lit venues. A certain amount of negative impact is expected but sometimes even these venues can seem toxic. Remember just because a venue is lit, doesn’t mean that HFTs do not operate there. Bloomberg Tradebook for example considers all venue toxic and interacts carefully in each to seek maximum liquidity capture with minimum impact.

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About Insight Bites in 60 Seconds

When it comes to stock trading, so much is changing so quickly that it’s difficult to understand and manage all the variables. Whether it’s algorithmic trading, price swings or dark liquidity, The Insight Bites series presents smart and concise snapshots of what a trader can do to address and overcome the most pressing of these challenges. Hosted by Traders Magazine and brought to you by Bloomberg Tradebook, each 60 second animated video provides quick and humorous insight into a unique issue that traders face every day. For more information, visit www.bloombergtradebook.com.