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I think I'm missing the connection between how HFT's trade and how it takes money away from regular people.
by thw09j9m 4y ago
I think I'm missing the connection between how HFT's trade and how it takes money away from regular people.
- md_ 4y agoThis is a pretty widely discussed question, and while I think the empirical evidence is so far unclear, there are some obvious theoretical models where costs for large institutional investors (like pension funds) go up. E.g. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2238516 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2238516. Pinging (https://www.finra.org/investors/insights/getting-speed-high-frequency-trading https://www.finra.org/investors/insights/getting-speed-high-...) would be an example such strategy.