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What? THAT CASH comes from owning the inside spread on roughly half of every US equity share that trades. They quote a micro-price adjustment, and it pushes out
by HaZeust 1y ago
What? THAT CASH comes from owning the inside spread on roughly half of every US equity share that trades. They quote a micro-price adjustment, and it pushes out anyone slower - which exactly the “service” that lets retail investors, like us, hit a bid or ask.
Honestly, whether YOU want to call that trend-following or market-making - I can't be arsed, but it’s still data-retrieval that runs THE institutional scale
- raspasov 1y agoThe ghost of Charlie Munger has entered the chat.
- HaZeust 1y agoGet to my original reply to you with all the sources first :) then Charlie can join in the fun!
- raspasov 1y agoYour argument is unconvincing. Even if the HFT market is 100 times the smallest estimate, it's still a relatively small portion of the world economy, which is approximately $100 trillion. HFT is a fascinating intersection of finance/C++/JVM for competitive super-nerds. It happens to add liquidity to the market, as far as I understand. I am not demonizing it in any way. However, it's not a significant portion of the US or global economy by any stretch. The argument over whether it sets or follows stock prices is mostly philosophical at this point.
- HaZeust 1y ago>"HFT is a fascinating intersection of finance/C++/JVM for competitive super-nerds. It happens to add liquidity to the market, as far as I understand. I am not demonizing it in any way." >"The argument over whether it sets or follows stock prices is mostly philosophical at this point." Sure, I respect that!