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You can’t state it’s at the expense without stating how.
by qeternity 3y ago
You can’t state it’s at the expense without stating how.
- Ekaros 3y agoThey make money/"wealth". That must come from either the seller or buyer or both. Unless existence of HFT directly leads to higher appreciation of assets traded.
- qeternity 3y agoAll trading is zero sum. If I own shares in a company for 20 years, that means someone else who sold them to me doesn’t own those shares and doesn’t earn those returns.
- rcxdude 3y agoIn the absence of a market maker (human or algorithmic), a much larger fraction of the value of a transaction is effectively randomly distributed between the buyer and seller. And it turns out buyers and sellers don't really like this much, and are happy to pay a small fraction of the transaction for a more predictable outcome.
- bobbylarrybobby 3y agoEven if you're right about the market, HFTs will make you a little less right for no reason other than that they've invested billions of dollars into being faster than you.
- lotsofpulp 3y agoAnd they will give you a little more liquidity.
- qeternity 3y agoWhat are you talking about?