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HFT is a different kind of 'beating the market', though, don't you think?
by jredwards 10y ago
HFT is a different kind of 'beating the market', though, don't you think?
- SEJeff 10y agoIt isn't beating the market, it is literally "making the market": https://en.wikipedia.org/wiki/Market_maker https://en.wikipedia.org/wiki/Market_maker
- raw23 10y agoArguable whether or not HFT increases liquidity in the market.
- SEJeff 10y agoIt is arguable if more liquidity is a good or a bad thing from some sides, but I'm not sure how HFT increasing liquidity was ever a question? It is a matter of volume and there is more automated than non-automated volume in most equities and futures exchanges.
- digler999 10y agoHowever, given that you want to make a trade, it's not arguable whether you want more market participants or fewer.
- dsacco 10y agoIt is "beating the market" if your strategy results in higher net fee-adjusted returns than the overall market (typically ~7-11%). But yes it's different because you're not deploying a trading strategy, you're being a market maker for other traders.