Bank of america options market making
There are scores of data points that show that the big institutions are more interested in profits for themselves than helping you secure your financial future. In fact, trading activity for these institutions has become much more profitable. Unfortunately, their actions are getting worse. Even though the government says it is trying to help small traders and investors, the loopholes are still looming.
Worse yet is the thought that the institutions would use your trading activity against you. But that is exactly what is happening. A firm, ITG, has been charged with trading against its own client order flow. Learn how to read order flow and institutional trading activity the Online Trading Academy way and trade and invest the same way these profitable institutions do.
It is the only way to increase your chances for profiting in the financial markets. Brandon Wendell — bwendell tradingacademy. Disclaimer This newsletter is written for educational purposes only. By no means do any of its contents recommend, advocate or urge the buying, selling or holding of any financial instrument whatsoever.
Trading and Investing involves high levels of risk. The author expresses personal opinions and will not assume any responsibility whatsoever for the actions of the reader.
The author may or may not have positions in Financial Instruments discussed in this newsletter. Many people even doubt that these large trading institutions exist. We commonly think that the large banks solely engage in businesses like managing client accounts and thrive on commissions. The truth is that trading activity constitutes either a large portion or even the majority of their profits. Well, these large institutions are publicly traded companies so one only needs to view their annual reports to see where their profits really come from.
Bank of America, for instance, made 13 billion dollars from their investment and brokerage services but over six billion from their trading activities. This easily dwarfed their moneys received from investment banking or commissions. If you have ever been involved in trading the US equity markets, you should be aware of market making activity.
If you do not know what this is, you definitely need to educate yourself before risking any more money in the markets themselves. Market makers create liquidity in the equity markets by buying and selling securities for themselves and their clients.
But they are also able to manipulate prices in the markets. This leads to losses from the uneducated traders who still commit money to the markets. One of these big market makers is Goldman Sachs. There are scores of data points that show that the big institutions are more interested in profits for themselves than helping you secure your financial future. In fact, trading activity for these institutions has become much more profitable. Unfortunately, their actions are getting worse.