Aug. 12 at 5:28 PM
$CLWT Potential reasons for buying only 2 shares
Algorithm Testing/Calibration: A HFT firm might be testing a new algorithm or fine-tuning an existing one by placing very small orders to observe market reactions without risking substantial capital.
Market Making/Liquidity Provision: Small, rapid trades can help HFT firms act as market makers, providing liquidity and profiting from the bid-ask spread.
Layering (Potentially Illicit): This involves placing multiple small orders at different prices to create a false impression of market interest, potentially to manipulate prices. This practice is prohibited.
Tick Trading/Spotting Larger Orders: Some strategies involve using small trades to detect larger institutional orders (e.g., from pension funds) being placed in the market.