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Daytraders Account For Over 90% Of Volume, Price Formation In ES, Crude, Gold And Sil


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 kbit 
Aurora, Il USA
 
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From Zerohedge:

Daytraders Account For Over 90% Of Volume, Price Formation In ES, Crude, Gold And Silver Futures | zero hedge

"This also means that churning HFT parasites, which are part of the non-Large trader universe are likely the most determining marginal price determinants for the bulk of commodities,and yes, that includes ES and interest rate products as well."


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 RM99 
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Am I the only person left scratching their head from this article?

If you look at the "data" presented, the large net trader position changes account for 5.5% of the volume over the range of 1/5/09 to 5/27/11. But they don't give you the data for the Trading Account Volume.

Then, in the second data set, the Large Net Trader position changes (over the range of 5/5/10 to 5/27/11) is 5.0% but the Trading Account Net position changes over that same period are 7.3%.

What accounts for the other 87.7% of the volume?

It seems a bit misleading or at least a logical inconsistency to claim that Large Net Trader position changes are roughly 5% and the Trading Account net position changes are roughly 7%, but then to attribute the remaining volume changes to trading accounts.

Either I'm missing something, or the article is very misleading.


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Last Updated on July 6, 2011


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