3 ms·
It just so happens that those who advocate and benefit directly from it are the ones who already have the power to make markets. The product of a company is bas
by DiscourseFan 3y ago
It just so happens that those who advocate and benefit directly from it are the ones who already have the power to make markets. The product of a company is based on its labor utilization, which doesn't change materially in the (very) short timespans of HFT. Liquidity aside, five minutes isn't going to make much of a difference when most people generally wait weeks or months to make major asset purchases like a car or a house, or to be approved for a small business loan. Only the ultra-wealthy car about milliseconds, because they can afford to make such vast and diverse trades in so little time.
- falcor84 3y agoLabor utilization is only one piece of a very big puzzle. Other pieces that change more quickly include commodity and supply chain costs, competitor activities, technological advances, and many other factors, all of which can change quite quickly in our globalized world.
- adhesive_wombat 3y ago"Quite quickly" and "so quickly that a basement full of racks of FPGAs, point-to-point radios, transcontinental fibre runs and optical switches are required to extract our value" are maybe not exactly the same thing.
- thfuran 3y agoWhat technological advances are occuring on millisecond timescales?