6 ms·
Encouraging ever faster trading times might be unwise, leading to instability and "hunting". There needs to be some damping in the system to guard against larg
by motters 16y ago
Encouraging ever faster trading times might be unwise, leading to instability and "hunting". There needs to be some damping in the system to guard against large uncontrolled fluctuations.
- eru 16y agoIf damping is profitable, someone will do it.
- parallax7d 16y agoThe profit motive should drive the use, not the implementation of a trading system that effects the world economy so directly. I've maintained that the standard increment for trades should be hours or days, not microseconds. This way liquidity is maintained on a macro scale, and parasitic orders based on micro manipulations of the system are eliminated.
- motters 16y agoWell it's a complicated system. Whilst individual traders might benefit from faster trading if you consider the health of the system as a whole, which favours steady predictable controlled growth, faster trading may introduce instabilities which result in reduced profitability.
- eru 16y agoFor a different perspective, there was a huge opportunity to make a killing with damping during the recent flash-crash.