Crossed/Locked Markets? Do they happen a lot?
I was reading about crossed/locked markets during the flash crash and was just wondering, do crossed markets happen a lot between exchanges, such as between BATS and NASDAQ?
Obviously, crossed markets get corrected almost instantaneously but I was wondering if it was a common enough occurrence that some firms make money off of it by arbitraging
I have seen lots of locked market in previous week. Guess you need an algo to catch a crossed market.
They don't happen a lot, but they do happen. The problem with trading a crossed market is that it never lasts long (usually less than a minute and most often less than 30 seconds).
Thanks for the responses.
Do you guys subscribe to some sort of Level 2 quotes? Is there a way to watch this stuff without being at a firm? Obviously as an independent trader, you probably aren't fast enough to act on a crossed/locked market but it would still be interesting to see it happen.
I work in a prop firm so I get the level 2 quotes. Not sure for independent traders, but you can buy those quotes too.
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