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I'm happy that there seems to be some discontent here on the substance of this article. Indeed, we perceive market 'crashes' to be negative, but in fact they (n
by zacharyvoase 14y ago
I'm happy that there seems to be some discontent here on the substance of this article. Indeed, we perceive market 'crashes' to be negative, but in fact they (necessarily) benefit as many people as they hurt. Being able to obtain stock in a company for fewer US$ can be a good thing. And who's to say that banning algorithmic trading will prevent rapid swings in the market? They happened before algorithmic trading was here, and they will happen afterwards.
All of this rhetoric seems to be a knee-jerk reaction to something the author is incapable of grokking (no doubt due to a limited human capacity to do so).
- krickle 14y agoHFT crashes do not benefit or hurt anyone, since they are rolled back.
- zacharyvoase 14y agoI'm almost certain this statement is incorrect. 1) Just because a price reverts to a previous value does not mean that no-one benefited or was hurt from the fact that it fell or increased in between. 2) The 'rolling back' of an HFT-prompted crash (the causal link being debatable anyway) is not guaranteed at all.