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By using the word "predator" you are somehow implying that this is bad behaviour. I disagree with that. Is it somehow wrong to buy because you think the price will go up?

You are further implying that there is 0 market impact from trading odd lots. By "taking" 1 share you are reducing the supply in a symmetric manner. Both demand and supply will adjust to this new information, whether its disseminated to the tape or not.




I intend no value judgement by the use of the word "predator", it's simply a technical term. I'm strongly in favor of predatory trading - it prevents institutional investors from screwing over the little guy by hiding big trades and forcing their counterparties to suffer the price impact.

I'm not implying that there is 0 market impact from trading odd lots. The market will adjust to the new information. It's just that the guy looking at the consolidated feed will not be making a profit by helping it adjust.




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