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Not all liquidity is the same. I've seen calculations that stated that HFT doesn't actually add valuable liquidity to markets because the moments you need that
by pedrocr 7y ago
Not all liquidity is the same. I've seen calculations that stated that HFT doesn't actually add valuable liquidity to markets because the moments you need that extra liquidity are price uncertainty moments where HFT traders disappear. I don't have the reference on hand though.
- growse 7y agoAnd yet Vanguard say that HFT helps lower their costs by adding market liquidity and therefore reducing spreads: https://www.forbes.com/sites/timworstall/2014/04/28/bill-mcnabb-of-vanguard-says-that-hft-is-beneficial-to-investors/ https://www.forbes.com/sites/timworstall/2014/04/28/bill-mcn...