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> However, a dark cloud remains: market data suggests that 70 percent of U.S. equity trading is now executed by high-frequency trading firms Is it just me, or
by linuxhansl 4y ago
> However, a dark cloud remains: market data suggests that 70 percent of U.S. equity trading is now executed by high-frequency trading firms
Is it just me, or was this one of the scarier statements in the article?
High frequency trading does not seem to add anything, it's not a market instrument to balance anything. It's more like gambling with the odds slightly in your favor.
Oh course, I'm a laymen when it comes to high frequency trading and might totally wrong.
- smabie 4y agoMarket makers provide cheap liquidity. Or in other words, compare the total transaction costs (bid-ask spread + commission) you would to pay today to trade 100 shares of stock today vs 30 years ago. The difference is staggering.