AMA Follow-Up
=============

| Author       | Source       | 
| :-------------: |:-------------:|
|  [u/dlauer](https://www.reddit.com/user/dlauer/) | [Reddit](https://www.reddit.com/r/Superstonk/comments/n5qp96/ama_followup/) | 

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[Education 👨‍🏫 | Data 🔢](https://www.reddit.com/r/Superstonk/search?q=flair_name%3A%22Education%20%F0%9F%91%A8%E2%80%8D%F0%9F%8F%AB%20%7C%20Data%20%F0%9F%94%A2%22&restrict_sr=1)

Thanks again for having me do the AMA, I enjoyed it! I'd be happy to continue to answer some questions whenever I can. I've gotten a couple of requests for the slides, so I'll post them here with some commentary, along with some other slides I didn't have the chance to show.

First, an illustration of how the NBBO is constructed:

[![r/Superstonk - AMA Follow-Up](https://preview.redd.it/4ivakg899dx61.png?width=723&format=png&auto=webp&s=21881e9826d8b43cb20f9d50ba1c1b4c859a12aa)](https://preview.redd.it/4ivakg899dx61.png?width=723&format=png&auto=webp&s=21881e9826d8b43cb20f9d50ba1c1b4c859a12aa)

I mentioned on the AMA that all trades must take place within the NBBO, regardless of whether they are on-exchange, on dark pools or within internalization systems. I should clarify that this is only true during RTH (Regular Trading Hours) - 9:30am - 4pm ET. Outside of those hours, there's no official NBBO and trades can happen at any price. If you see crazy prices during pre-market or AH trading sessions, that's why. Please NEVER submit a market order outside of RTH - you should generally never use market orders anyway, you should always put a limit price on your order, even if it's a marketable limit order.

Here's the order type distribution slide I showed (from 2015):

[![r/Superstonk - AMA Follow-Up](https://preview.redd.it/p5ai2n8q9dx61.png?width=741&format=png&auto=webp&s=d48742ebb390b3d1e5dd291e6b3d6b738687f454)](https://preview.redd.it/p5ai2n8q9dx61.png?width=741&format=png&auto=webp&s=d48742ebb390b3d1e5dd291e6b3d6b738687f454)

I didn't get to show this exchange fee schedule slide, but it's CRAZY. Goes to show you how complex markets are when you combine exchange fee tiers with complex order types, geographic distribution of datacenters, and the conflicts-of-interest brokers face when routing orders:

[![r/Superstonk - AMA Follow-Up](https://preview.redd.it/i2scsz7w9dx61.png?width=1213&format=png&auto=webp&s=ae52b06d14d9f79f4dfec412c0692c542c77fbae)](https://preview.redd.it/i2scsz7w9dx61.png?width=1213&format=png&auto=webp&s=ae52b06d14d9f79f4dfec412c0692c542c77fbae)

Here's the diagram I showed for market complexity:

[![r/Superstonk - AMA Follow-Up](https://preview.redd.it/i5cr6j5z9dx61.png?width=754&format=png&auto=webp&s=1c04f06799d460e8f5f4113049439531f5b30db0)](https://preview.redd.it/i5cr6j5z9dx61.png?width=754&format=png&auto=webp&s=1c04f06799d460e8f5f4113049439531f5b30db0)

Here are the two slides showing off-exchange trading distribution for GME. These numbers come straight from the [FINRA OTC Transparency website](https://otctransparency.finra.org/otctransparency/AtsIssueData).

[![r/Superstonk - AMA Follow-Up](https://preview.redd.it/2prrwr62adx61.png?width=1229&format=png&auto=webp&s=a5875ea501e14f8164eb5e2abd8b11b7083ab1c7)](https://preview.redd.it/2prrwr62adx61.png?width=1229&format=png&auto=webp&s=a5875ea501e14f8164eb5e2abd8b11b7083ab1c7)

[![r/Superstonk - AMA Follow-Up](https://preview.redd.it/pk2pf0s6adx61.png?width=1219&format=png&auto=webp&s=07170a65cf24b500551dda6d3b1218bc02a9195b)](https://preview.redd.it/pk2pf0s6adx61.png?width=1219&format=png&auto=webp&s=07170a65cf24b500551dda6d3b1218bc02a9195b)

Here are a couple of HFT slides, the second one I didn't have time to show:

[![r/Superstonk - AMA Follow-Up](https://preview.redd.it/l4kp7zbaadx61.png?width=1246&format=png&auto=webp&s=20a5ab052ea3105320f4e8c75ee28e64e9344a17)](https://preview.redd.it/l4kp7zbaadx61.png?width=1246&format=png&auto=webp&s=20a5ab052ea3105320f4e8c75ee28e64e9344a17)

[![r/Superstonk - AMA Follow-Up](https://preview.redd.it/j055t5kcadx61.png?width=1091&format=png&auto=webp&s=aad07f84fe679c3576114513d5afa0d0c5f00bd5)](https://preview.redd.it/j055t5kcadx61.png?width=1091&format=png&auto=webp&s=aad07f84fe679c3576114513d5afa0d0c5f00bd5)

I believe there are many beneficial high-speed trading systems (in green) and many that are predatory or rely on structural arbitrage (e.g., arbitrage that does not get "arb'ed" away with competition).

I'm glad the AMA was interesting, and like I said I'll try to answer as many questions as I can. I think it's great that there's interest in getting educated on these issues, and hopefully the time is right for some structural change over the next couple of years.
