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They don't really create liquidity, but they did narrow the bid-ask spread. The "liquidity" they provide dries up when volatility spikes anyways (although that
by jeffreyrogers 5y ago
They don't really create liquidity, but they did narrow the bid-ask spread. The "liquidity" they provide dries up when volatility spikes anyways (although that was always true, so not really a criticism of HFT).