3 ms·
The problem you mention is real, but first come first served is an easy solution. That also solve the order problem. That encourage you to submit transactions
by jakozaur 11y ago
The problem you mention is real, but first come first served is an easy solution. That also solve the order problem.
That encourage you to submit transactions earlier in time slot (as you get more chance to complete them).
Still there is some HFT strategies possible, but window of opportunity will be by an order of magnitude or two smaller.
- harryh 11y agoIf orders are filled on a first come first serve basis then you've just recreated the continuous market that we have today and changed nothing.
- ThomPete 11y agoYou removed the HFT advantage of being able to trade at the millisecond no?
- harryh 11y agoNo. Because if orders are filled first come first serve if my order arrives 1 millisecond before yours my order will get filled before yours. Just like today with continuous markets.
- ThomPete 11y agoThe continous market delivers continues information which can then be used by HFT companies to take advantage of doing something humans can't. buy and sell in milliseconds. This is the problem NOT that one trader gets his or her orders in before the other. At least that is how I understand the problem.
- harryh 11y agoIf my order goes in before yours then there is a good chance that my order will get filled and yours won't. The speed at which traders (automated or otherwise) get in orders is of critical importance. If you don't understand that, then your understanding of the problem is hopelessly wrong.
- ThomPete 11y agoThat someone get an order in before another will always be a reality. It's not a problem anymore than there are winners and loosers on the stock market. What we are talking about is specifically removing the advantages of HFT (if one consider it a problem), not removing the fact that someone can get and order in before someone else.