4 ms·
It’s just parasitism on top of the legitimate activities of the market (capital allocation). People who benefit from it (market administrators, traders) like t
by brmgb 4y ago
It’s just parasitism on top of the legitimate activities of the market (capital allocation).
People who benefit from it (market administrators, traders) like to pretend it increases the liquidity of the market and that it’s a good thing. How you appreciate this argument generally directly depends of how much you stand to gain from it being accepted.
- astrange 4y agoHFT/market making is good for retail investors. Otherwise you'd have a lot more trouble and higher fees investing eg $100 at a time.
- brmgb 4y agoYeah, yeah, I know the drill lower fees, faster price discovery, better liquidity. You will have a hard time convincing me any of these benefits are worth tolerating the damage speculations wreak like clockwork every ten years or so but I know I am on the losing side of this battle.
- astrange 4y agoMarket makers aren't speculators. It's like the opposite.
- brmgb 4y agoMarket makers very much are speculators. They intend to make money on the spread. They clearly are not investors.
- astrange 4y agoWhat belief are they speculating on? As for if they're hurting markets, that seems like banning grocery stores and expecting people to buy food from cereal manufacturers.