/biz/ - Business & Finance

>>18534610
>>18534225
my main question is what can market makers see in regards to stop losses? i've heard everything from they can't see them to they can see them even trailing stops to they can see hard stops but not trailing stops. i want to know wtf im dealing with here, i feel like you need stops to protect yourself from spikes. look at this for example, it's confusing what's real and what's a lie:

>https://www.quora.com/How-does-a-market-making-algorithm-see-my-stops
>This is a really interesting question, I had to do some research, and talked to a guy on a trading desk to get a definitive answer.
>Stop loss orders with a fixed price, are sent to the market, (edit:) but they are NOT visible on the public order book, however, there is no way to view that such an order is specifically a stop-loss, it just shows up as a vanilla order to sell, at whatever price. Algorithms, and anyone really, can view the order book and potentially see a big mess of sell orders at some price and move to trigger them but they will not necessarily know that they are stop-loss orders because they only appear as vanilla sells (or buys).
>With something even fancier, like trailing-stops, rather than constantly canceling and replacing the order, your broker sits on it until the trailing stop is formally triggered, then the order is sent to the open market.

>EDIT: Ok I had to go ask a few more people to clarify things.
>Basic stop loss orders are sent to the exchanges, but they are NOT visible publicly in any capacity, and they become market orders when triggered.
>Fancy stop loss orders (trailing stops) are held inside the broker until triggered rather than being constantly cancelled and replaced.
>Your stop loss orders are safe from prying eyes.