Crack of Doom: Playing Slap-Jack Against A Tap Into Your Own Spine

Over at TheStreet yesterday Richard Bloch was waxing philosophical about retail investors buying stocks against high-frequency traders.

The bigger your order, the more it could impact the market. So in reality, the meaning of “market price” depends on quantity as much as it does price. At any point in time, the market for 100 shares of Amazon (AMZN), for example, would be different than for say, 10,000 shares.

Block notes that in a sense Planck’s constant gives everyone a theoretically level playing field, but that’s hardly comforting when you’re in a light-sabre duel trading photons with CERN :(

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2 Comments for this entry

  1. twist says:
    November 1, 2010 at 9:03 AM

    John-

    I wonder how big this Ambac situation is going to be?

  2. johnm says:
    November 1, 2010 at 11:19 AM

    was forecasting monoline catastrophe 2 1/2 years ago ;)
    http://my.telegraph.co.uk/doomerjohnm/johnmcleod/3976041/Ambageddon_Now/

    Priced in, right? This is like title insurance, gotta buy it but a systemic event will destroy the companies so it’s just a scam to privatize premiums and socialize clams :(

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