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I don't dispute that HFT can reduce spreads. The question is whether that benefit may come at some expense to smaller investors. See the previous link I posted
by unclebucknasty 8y ago
I don't dispute that HFT can reduce spreads. The question is whether that benefit may come at some expense to smaller investors.
See the previous link I posted. Also, of course, "Flash Boys" by Michael Lewis. There is no shortage of discussion around this question.
- tptacek 8y agoHow does that question even make sense? By definition, the spread is a tax investors --- including small investors --- pay to buy or sell a holding. In what way could they possibly benefit from wider spreads? Regarding Flash Boys: I don't know of a single person who works in trading who has stuck up for that book. I strongly recommend "Flash Boys: Not So Fast", which debunks it but is also much more interesting from a technical perspective than Lewis's book.
- unclebucknasty 8y ago>in what way could they possibly benefit from wider spreads? Never said that. We seem to be having trouble communicating. It happens. Thanks for the discussion.