Nanex Research
Nanex ~ 15-Jul-2013 ~ HFT Saves Buyer over $1 Million!
On July 15, 2013, a buyer of the stock of Guaranty Federal Bancshares Inc.(symbol GFED,
market cap $33M) saved more than $1 Million on a 100 share order! At first, there were
complaints in twitterland about how this poor customer paid way too much ($1,449.99)
for 100 shares of this stock. There were even snarky comments about how an internalizer
only gave them a penny discount below the best ask. But close analysis of the data shows
that just 30 minutes before this trade, the best ask price was a whopping $11,286.24
per share! Which means that High Frequency Trading was able to lower the price of this
100 share trade from $1,128,624 to $1449.99. Wall Streets High Frequency Traders really
went out of their way for this customer.
1. GFED Trades color coded by reporting exchange and NBBO (gray shade).
2. GFED best bids and asks color coded by reporting exchange and NBBO (gray shade).
You can see the best ask soar from about $12 all the way to $11,286.24
3. GFED Zooming in on the ramping of the best ask price over about 1 minute
of time.
4. Zoom of Chart 1.
5. GFED all bids and asks color coded by reporting exchange and NBBO (gray shade).
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