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Maybe in the US, but in The Netherlands it's high frequency trading. Flow Traders made 10x because of the novel corona virus. In all fairness that could've tur

Maybe in the US, but in The Netherlands it's high frequency trading. Flow Traders made 10x because of the novel corona virus. In all fairness that could've turned out very differently. The reason for that: volatility went up, but it could've easily gone down.

MiroF 7y ago
> volatility went up, but it could've easily gone down. I don't see how volatility could have gone down. Maybe explain?
- deleted 7y ago
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- mettamage 7y ago
  Well, if I understand it correctly (my knowledge is too shallow) this happened with a couple of previous crashes. After the first huge volumes of sales, trading would die down because no one had faith in the economy and the stock market. Died down trading = low volatility
  - MiroF 7y ago
    The great thing about claims like these is you can fact-check them. https://www.macrotrends.net/2603/vix-volatility-index-historical-chart https://www.macrotrends.net/2603/vix-volatility-index-histor... Here it appears that volatility went up, up, up for 2008 - then died back down to pre-crash levels with occasional spikes. I don't see volatility going much below what it was before the crash. You can see a similar pattern in 2020. > After the first huge volumes of sales, trading would die down because no one had faith in the economy and the stock market. I would honestly be shocked if this was a real thing - if a ton of people stopped trading, it would cause other people to trade on the inefficiencies that creates.