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HFT makes money off of volatility. The more the world burns the more money they make by keeping markets liquid.
by nvarsj 4y ago
HFT makes money off of volatility. The more the world burns the more money they make by keeping markets liquid.
- durumu 4y agoThat’s true, in much the sense that doctors make money off people being sick. In times of high volatility, it’s HFTs that provide liquidity and keep spreads narrower than they’d otherwise be. It is extremely illegal to purposefully make markets more volatile; good trading firms are not going to do that.