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Society as a whole benefits, but there are high individual costs. We ought to figure out a way to smooth out those costs for the individuals.

collyw 11y ago
I am not sure it always does. Do you view the NSA's snooping technology as a benefit to society? More high tech, well paid jobs have been created there. Likewise I feel that a great deal of the tech involved in finance is of questionable benefit to society as aw whole. Does High frequency trading actually benefit anyone other than the banks?
- adrianN 11y ago
  I'm no financial expert, but I believe HFT benefits many people by making the difference between buy-price and sell-price smaller and increasing the liquidity of the market.
  - collyw 11y ago
    The banks seem to be the only ones benefiting from this as far as I can tell. My life doesn't feel any better for HFT.
    - gd1 11y ago
      Look around you. Pick any product you like. A thousand financial transactions went into making it, all along the supply chain. Currencies were converted and hedged, iron ore and copper and crude oil futures were purchased and sold. When technology squeezes out middlemen and makes them more efficient, you gain.
      - collyw 11y ago
        On the other hand when bankers manipulate prices then everyone looses.
      - edc117 11y ago
        I could be wrong, but from what I understand of HFT, it doesn't squeeze out middlemen, it squeezes out competition. It sets the barrier to entry so high that only the super rich can participate. I agree completely with your point, by the way, I'm just not sure HFT is a good example of it.
- mavdi 11y ago
  And this is only the economical measure of benefits for the society. For instance rarely anyone speaks of the environmental damage as a direct result of human advancement which might ultimately be fatal for society.
- dummy7953 11y ago
  High frequency trading helps create liquidity. But I wouldn't be the least bit surprised to find that the stock market is largely rigged. Typically, a new recession starts in the first term of a new president, so 2017 should be interesting if not totally predictable.

collyw 11y ago

I am not sure it always does. Do you view the NSA's snooping technology as a benefit to society? More high tech, well paid jobs have been created there. Likewise I feel that a great deal of the tech involved in finance is of questionable benefit to society as aw whole. Does High frequency trading actually benefit anyone other than the banks?

adrianN 11y ago
I'm no financial expert, but I believe HFT benefits many people by making the difference between buy-price and sell-price smaller and increasing the liquidity of the market.
- collyw 11y ago
  The banks seem to be the only ones benefiting from this as far as I can tell. My life doesn't feel any better for HFT.
  - gd1 11y ago
    Look around you. Pick any product you like. A thousand financial transactions went into making it, all along the supply chain. Currencies were converted and hedged, iron ore and copper and crude oil futures were purchased and sold. When technology squeezes out middlemen and makes them more efficient, you gain.
    - collyw 11y ago
      On the other hand when bankers manipulate prices then everyone looses.
    - edc117 11y ago
      I could be wrong, but from what I understand of HFT, it doesn't squeeze out middlemen, it squeezes out competition. It sets the barrier to entry so high that only the super rich can participate. I agree completely with your point, by the way, I'm just not sure HFT is a good example of it.
mavdi 11y ago
And this is only the economical measure of benefits for the society. For instance rarely anyone speaks of the environmental damage as a direct result of human advancement which might ultimately be fatal for society.
dummy7953 11y ago
High frequency trading helps create liquidity. But I wouldn't be the least bit surprised to find that the stock market is largely rigged. Typically, a new recession starts in the first term of a new president, so 2017 should be interesting if not totally predictable.