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The liquidity argument is not a "cop-out." Due to algotrading, spreads have been tightened and cost of entry/exit have been lowered. While there are some proble
by bensw 14y ago
The liquidity argument is not a "cop-out." Due to algotrading, spreads have been tightened and cost of entry/exit have been lowered. While there are some problems with algorithmic trading, the alternative (going back to the specialist model) is downright insane. If you think algotraders are "ruining" the market and society, then, the specialists and traders were actively scamming everyone.
I'm glad that you have at least done a little bit of research, unlike the majority of articles that came out after Knightmare, but algorithmic trading is a net positive for both the market and society.
- arturadib 14y agoWho gives a rats ass about shaving off spread points? Only "traders" - not long-term investors. Also, I have done more than "a bit of research" on the topic (I'm ashamed I was once so innocent as to make money with stat arbitrage, now I know better). > but algorithmic trading is a net positive for both the market and society Oh yeah? How exactly?
- bensw 14y agoNot sure how citing that spreads have been tightened since the advent of algotrading is "prejudice" or "opinon."