3 ms·

Not just HFT, options market, futures market are all zero sum. They are massive.

• crossbody 5mo ago
  How massive relative to everything else in the economy that is not zero sum? 1%? Also, disagree on options and futures market. They do provide important economoc function of price discovery and insurance against risk
  • srean 5mo ago
    Much bigger than non-derivative stock market for sure. "The derivatives market is, in a word, gigantic—often estimated at over $1 quadrillion". The stock market would be puny in comparison. This is quite well known so was quite surprised by your objection. https://www.investopedia.com/ask/answers/052715/how-big-derivatives-market.asp https://www.investopedia.com/ask/answers/052715/how-big-deri... The derivatives market is much larger than the stock market, both in sheer trading volume and total face value. While global stock markets represent a total value of roughly \(\$120\) trillion, the estimated notional value of the global derivatives market easily exceeds \(\$500\) trillion to \(\$1\) quadrillion. https://share.google/aimode/EAEGnOouA5dvj9leC https://share.google/aimode/EAEGnOouA5dvj9leC Derivative markets are necessary for price discovery but when they tower over in volume over the market whose prices it was supposed to discover it is serving a purpose that towers over its justified/motivating purpose.
    • crossbody 5mo ago
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