A scooter won’t overtake a truck on the highway. But it can ride down a narrow street and stop anywhere for as long as it likes.
- Speed. The programs of big players react to news in fractions of a second. So it’s pointless for a private trader to jump in on news — they’ll always be last.
- Size. A firm with billions can’t get in and out quickly: its own trade moves the price. A private trader with a small account gets in and out unnoticed.
- Obligations. A large firm has to report to its clients every quarter. A private trader can wait weeks for a good spot.