01-03-2021, 10:05 PM
What's to stop m1finance from giving you worst possible price in the trading window?
<!-- SC_OFF --><div class="md"><p>Currently how it works they don't have a specific time which they execute the trade, but rather a window. In my mind this can be exploited by giving you the worst possible price in the trading window and pocketing the morning volatility. They may not always benefit, for instance if they bought at the high of the morning you get the stock at that price, but if they bought at morning lows and the stock jumps 3-4 percent in the next hour, there's nothing from saying they bought at or near morning highs and pocketing the difference.</p> <p>This is different than selling orders flow to market makers and flat out an unprovable way to take money, if they are in fact doing that. </p> <p>Would be much nicer if the window of execution was very small, say 10 minutes or so, to prevent the possibility of this happening. On a flat day of the stocks you're buying it's not a big deal, but if you're buying on a day that the market moves big in the morning hours it can be a difference maker in the portfolio, especially if they combined that with selling order flow which they definitely do.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/RainbowUnicorns"> /u/RainbowUnicorns </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/kpmnow/whats_to_stop_m1finance_from_giving_you_worst/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/kpmnow/whats_to_stop_m1finance_from_giving_you_worst/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>Currently how it works they don't have a specific time which they execute the trade, but rather a window. In my mind this can be exploited by giving you the worst possible price in the trading window and pocketing the morning volatility. They may not always benefit, for instance if they bought at the high of the morning you get the stock at that price, but if they bought at morning lows and the stock jumps 3-4 percent in the next hour, there's nothing from saying they bought at or near morning highs and pocketing the difference.</p> <p>This is different than selling orders flow to market makers and flat out an unprovable way to take money, if they are in fact doing that. </p> <p>Would be much nicer if the window of execution was very small, say 10 minutes or so, to prevent the possibility of this happening. On a flat day of the stocks you're buying it's not a big deal, but if you're buying on a day that the market moves big in the morning hours it can be a difference maker in the portfolio, especially if they combined that with selling order flow which they definitely do.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/RainbowUnicorns"> /u/RainbowUnicorns </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/kpmnow/whats_to_stop_m1finance_from_giving_you_worst/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/kpmnow/whats_to_stop_m1finance_from_giving_you_worst/">[comments]</a></span>Kind Regards R