Handelsgator

Handelsgator is an informal term used in some online trading communities to describe an automated trading agent or trader that acts with extreme speed and aggressiveness to exploit short-term price differences across markets. The word combines "handel" (trade) with "gator" (an alligator) to convey predatory, opportunistic behavior. It is not a formally defined industry category and usage varies by platform and region.

Mechanism: A typical handelsgator is a software bot or set of scripts that monitors multiple price feeds and order books, then places rapid, small orders designed to capture tiny spreads or price dislocations. Many variants rely on low latency connectivity, co-location opportunities, and rapid order cancellation. Some strategies target cross-exchange arbitrage, while others focus on opportunistic order-book sniping.

Variants and ethics: Handelsgator strategies range from high-frequency latency arbitrage to market-making in narrow spreads. Critics argue they can contribute to order-book fragmentation, front-running perceptions, and increased short-term volatility; supporters say they improve liquidity and price discovery. The ethical and regulatory status of such bots varies by jurisdiction and exchange rules, with some venues imposing speed limits or banning certain automated behaviors.

Impact and regulation: Exchanges and regulators have implemented measures to curb abusive automated trading, including throttle limits, required latency documentation, and surveillance for manipulative practices. Traders who rely on such bots must ensure compliance with market rules, data use agreements, and fair access provisions.

See also related topics include high-frequency trading, algorithmic trading, and market microstructure.