Derivatives

Money Spread

May 30, 2021
Derivatives

Moneyness

May 30, 2021

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A directional strategy that is deployed by high frequency traders, both as providers and users of liquidity, in the lookout for the existence of nondisplayed liquidity, i.e., large buyers or sellers hidden in the order book, and then buying or selling ahead of these orders to get advantage of the resulting price movement. This involves attempts to predict price moves and then buy or sell accordingly.

It is also known as order anticipation or pinging.

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