Into the Algorithms
Traders Magazine, July 2003
Decimalization has decimated displayed liquidity. Large bids and offers have virtually disappeared. Traders are too worried about getting pennied' to post size. Now many frustrated pros are clamoring for Washington to reverse course and institute a five-cent minimum trading increment. But even while pros are calling for nickel ticks, most large trading desks are quietly adapting to the new reality. Strategies are emerging that help traders cloak their intentions and avoid unwelcome market impact.
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