4 ms·
This is an overly simplistic view of algo trading. It ignores things like market services, the very real value of liquidity, and so on. Also ignores capital ga
by atomicnumber3 1y ago
This is an overly simplistic view of algo trading. It ignores things like market services, the very real value of liquidity, and so on.
Also ignores capital gains - and small market moves are the very mechanism by which capital formation happens.
- fwip 1y agoStock is only one part of capital formation, and of that, algorithmic trading is only incidental to the sale of those stocks. Put another way - capital was accrued long before we had a stock market, and even longer before we had computers deciding which stocks to sell or buy.