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"Liquidity is needed most when markets are falling outside the norm" True but humans have fail-safes and kill switches too, thus this is not a valid argument a
by secretasiandan 16y ago
"Liquidity is needed most when markets are falling outside the norm"
True but humans have fail-safes and kill switches too, thus this is not a valid argument against HFT in favor of human market makers. At any time, humans could step in and provide liquidity during the flash crash and during other crashes.
- tricky 16y ago"At any time, humans could step in and provide liquidity during the flash crash and during other crashes." Humans can, and do. But algorithms can't and won't.