3 ms·
So before there was HFT there was no liquidity?
by zabzonk 6y ago
So before there was HFT there was no liquidity?
- lucaspauker 6y agoThere were still market makers that provided liquidity. Algorithms can just do it faster than people.
- rcxdude 6y agoAnd cheaper
- newdude 6y agoI don't get it. Reminds me of a blog post were the guy discussed a Portuguese stock, construction industry if my memory does not fail me, that has a "very low" trading volume. When I looked up the stock, (I think the stock was very expensive), trading volume was like 1 Share every 6 months or so. Yes, I guess you could call this "very low" trading volume. So where would HTF come in here?
- smabie 6y agoAn HFT would list buy and sell orders on the book so that if you wanted to buy or sell, you always could.
- RhysU 6y agoI want so many people in these threads to travel back in time so that they can tut-tut the market makers for wearing lifts in their shoes.
- rcxdude 6y agoMuch less, and it was more expensive. The total cost of market making has gone down substantially with HFT, mostly because a small firm replaces a large army of floor traders.