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Nobody except for HFT people has ever argued that they add value to the system. Everyone else believes that HFT exists because it's profitable, and that it sub
by jellicle 14y ago
Nobody except for HFT people has ever argued that they add value to the system.
Everyone else believes that HFT exists because it's profitable, and that it subtracts value from the system.
You can choose who you want to believe.
- harryh 14y agoMarket makers used to be humans. Now, due to advances in technology, computers can do that job. Computers are (generally) cheaper than humans so they can do the job for less money. You can see this in the fact that spreads have decreased as market making has been turned over to computers. That's the value they are adding. Market making has always been work so it's always cost money. But now it's cheaper. There's always been money subtracted from the system, but now it's less than it used to be.