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Low latency/rapid trading seems to have added no value to the stock market and eroded a large portion of the fair market evaluation of companies. Whether it's
by munk-a 3y ago
Low latency/rapid trading seems to have added no value to the stock market and eroded a large portion of the fair market evaluation of companies. Whether it's technically possible or not it's likely we'll need to artificially add delay into the system - ideally that can be done in a way that makes it fair to traders that have a naturally high latency connection to even the playing field.
- maerF0x0 3y agoThe claim is they play marketmaker (they hold stocks for short periods of time so your trades execute faster), they obviously want a profit incentive for doing so.
- kstrauser 3y agoThat begs the question by assuming that trades executing faster are a good thing to optimize for. Is the stock market for investing in a company, or for extracting money from momentary fluctuations? Those seem to be mutually exclusive.
- anamax 3y ago> Is the stock market for investing in a company With the exception of the IPO and buy-backs, the stock market is NOT for/about investing in the company. When you buy IBM on NYSE, IBM doesn't get anything. Similarly for selling stock. If IBM doesn't see any money from a trade, how is that trade an "investment" in IBM? Stock trading is trading partial ownership. That's very different from investing. In other news, there's no money in the stock market. The money that you pay for IBM stock does not go to the "stock market". It goes to whomever owned the stock that you bought.