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>HFT reduces transaction costs for market participants. You can see this in the narrowing of bid/ask spreads If HFT were a net positive for market participants
by crdoconnor 8y ago
>HFT reduces transaction costs for market participants. You can see this in the narrowing of bid/ask spreads
If HFT were a net positive for market participants then those same participants wouldn't be fleeing to dark pools in an attempt to avoid them.
- jeffreyrogers 8y agoThey go to dark pools because they are less transparent and it's easier to sell large blocks of shares without making a large price impact (in theory at least).
- crdoconnor 8y agoExactly. I believe the term HFT uses for exploiting that is "spearing whales".