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My understanding was that HFTs make the most profits during periods of highest volatility. Why do they pull out?
by shric 3y ago
My understanding was that HFTs make the most profits during periods of highest volatility. Why do they pull out?
- fnordpiglet 3y agoDepends on their strategy but a lot of strategies depend on some sort of price discovery which requires having a probable estimate of what the current price should be and some form of market making around the level. In a very dislocated market the price is unknowable and it becomes gambling, and generally market making strategies are explicitly not about gambling but about facilitating trades around the “true” price.
- deleted 3y ago[deleted]