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"HFT makes nothing but money for Nasdaq, and narrows spreads for investors." HFT makes a pile of money for Nasdaq. But narrows the spread? Prove it. Here's o
by nanex 14y ago
"HFT makes nothing but money for Nasdaq, and narrows spreads for investors."
HFT makes a pile of money for Nasdaq. But narrows the spread?
Prove it.
Here's one of thousands of examples that shows otherwise.
http://www.youtube.com/watch?v=sDriNz8oAlc http://www.youtube.com/watch?v=sDriNz8oAlc
- cma 14y agoEven if it does narrow spreads, it doesn't matter at the margin. If the spread is 5 pennies on average without HFT, and 1 penny with it, investors are losing out. HFT is charging them a penny to remove a penny of randomness. If someone offered you a a game where you could either: A) flip nickles: heads you keep get the nickle, tails your opponent gets it B) flip pennies: heads you keep the penny 98% of the time, 2% of the time some other third party gets to keep it (an HFT outfit), your opponent gets it Would you take A or B?
- Drbble 14y agoWhy do non-HFT buyers or sellers deserve the spread any more than HFT buyers and sellers? They pay the same fees you do.
- cynicalkane 14y agoI guess you're a guy from Nanex. I'm curious why you think I should have to "prove it" if willing buyers are trading with willing sellers on an exchange they chose to trade on. Seems pretty anti-market for a finance company.
- nanex 14y agoYou made a false statement. Simple as that.
- tedunangst 14y agoIs there a video that shows us what the spread looks like without HFT?