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Sunday, May 13, 2007

Advanced topic: NYFIX trading (also known as Millennium or MILN)

This is probably the most successful arbitrage strategy that regular day traders use. The basics is to find a buyer or seller trading under NYFIX, and try to exploit them. This is available for NYSE and NASDAQ. Retail brokerages don't have access to NYFIX directly, but many day trading firms do. This is how people earn thousands a day with limited risk.

I will reveal the complete strategy upon popular request. This only applies to the small percentage of people trading under firms that have access to NYFIX, so most of you may not be interested.

2 comments:

Sundog said...

The problem with arbitrage is:
How long does the window of opportunity last ?

MasterMilnTrader said...

Well, you'll have to keep testing to see if there are shares available on MILN. Usually you can find big buyers/sellers that will continue to supply shares on MILN for a while.