4 ms·
> The prospects of future profits do not change every nanosecond. That's what people get wrong all of the time. Most of HFT is not about seeing a trend and act
by dna_polymerase 9y ago
> The prospects of future profits do not change every nanosecond.
That's what people get wrong all of the time. Most of HFT is not about seeing a trend and acting on it. Most of that is front-running on data obtained from deals with brokerage firms and the likes.
- Iv 9y agoAnd how does this add value anywhere? A timestep of a day seems to have all the benefits of regular stock exchanges without any drawbacks.
- dna_polymerase 9y agoJust wanted to point this out. HFT is not only really fast trading in order to gain from the typical "sell higher than you bought" scheme. Of course front-running adds no value. Though of course those companies will say that the "add liquidity". Which is BS.