4 ms·
It's more like an apple vendor was offering an apple for 20 cents and someone stepped in between you and the vendor and offered it for 21 cents. You have no id
by ryoshu 16y ago
It's more like an apple vendor was offering an apple for 20 cents and someone stepped in between you and the vendor and offered it for 21 cents. You have no idea that the person offering the apple for 21 cents is not the real vendor, he's the only person you can buy from. That's what the millisecond HFT systems are doing.
The prescient part of the 2009 article: "If you're wondering how Goldman Sachs and other "big banks and hedge funds" made all their money this last quarter, now you know."
- theli0nheart 16y agoActually, if you have a limit to buy at 25 cents and a seller still exists at 20 cents, the market maker will fill your order at the lower price first.
- afterburner 16y agoBut, and someone correct me if I'm wrong, not if the HFT apple trader buys from the apple seller at the lower price and then resells it.
- grandalf 16y agoIf course the HFT trader wouldn't sell unless it could profit by selling. They are HFT traders, not market makers. Obviously if you are buying shares sold by an HFT trader, you are not buying them from a market maker, so you are getting a better price than the market maker is willing to offer.
- cturner 16y agoHFT is a technique that's used by many people, including exchanges, hedge funds and market makers. You're right though - the exchange is obliged to fill the consumer at the best available price.
- grandalf 16y agoI meant market makers in the role of traditional market maker (which could be HFT but is not HFT as a strategy, merely as a speed measurement).
- yummyfajitas 16y agoIf the HFT trader offers a lower price, and you offer a higher price, the exchange will fill your order first.
- deleted 16y ago[deleted]