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It is the popular imagination conflates them... 1. High-Frequency trading, by definition, done by algorithms. 2. We hear rumors or storyies of Algorithms gone
by fr0sty 16y ago
It is the popular imagination conflates them...
1. High-Frequency trading, by definition, done by algorithms.
2. We hear rumors or storyies of Algorithms gone wild.
3. This report blames and 'Algorithmic Trade' as the cause.
People are tempted to 'connect-the-dots' and would likely end up with an erroneous conclusion.
- DannoHung 16y agoHigh-Freq is usually the label used for prop trading. Algo is usually the label used for agency trading. The differences between the algos used isn't really pertinent.
- lrm242 16y agoThe differences are huge. The motiviations behind each are entirely separate. They are used by different people for different things. A day trader, slogging it out in front of their computer every day is very different from a floor broker trying to execute customer orders. That is the fundamental difference we're talking about here. Unfortunately, any time the markets are mentioned in connection with algorithm people instantly think "high-frequency trading", and most often they are wrong.