Hi all,
Can someone explain the difference between these two trading strategies? My own (faulty) understanding are that these two should in theory be the same…
Yes they are largely similar. Both used by informationally advantaged traders.
They are close but there are some difference:
- Liquidity at any cost: used for block sales (big sized) transactions. Quick execution at any price, it is mostly used when information is leaked.
Cost are not important: usually are not bug sized in order to be executed very quickly. It is not as expensive as the other trading tactic. And there are alot of motives for this tactic other than information.