(HFT) tactics have targeted natural gas so hard, that traditional traders are abandoning the trade entirely, says the Wall Street Journal.
And if that doesn't concern you, for the rest of us this manipulation means the price of natural gas can fluctuate wildly.
Here's how it all goes down:
Natural gas traders wait for a weekly national natural gas inventory report that's released every Thursday at 10:30 a.m., and trade on the figures about supply and demand. Usually they put orders into the futures market based on what they think the information in the report will do to the price of natural gas — these are called resting orders.
For HFTs, the resting orders are actually sitting ducks, so they've started doing something called "banging the beehive."
More
No comments:
Post a Comment