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The millisecond-term zero sum game is part of what allows for a positive sum long term. For example, zero fee trading was pioneered by Robinhood and only possib
by Anon1096 2mo ago
The millisecond-term zero sum game is part of what allows for a positive sum long term. For example, zero fee trading was pioneered by Robinhood and only possible because of payment for order flow, and as a result it's virtually unheard of now for retail to be paying per transaction. Now more retail investors can participate and everyone benefits. You can also point to lower spreads and faster execution as direct benefits.
- ralph84 2mo agoOr you could just hold auctions a few times per day and eliminate the billions of dollars spent trying to win a pointless race.
- loeg 2mo agoNo one wants four-trades-a-day settlement to save 0.00001% or whatever in trading fees.
- amenhotep 2mo agoThat's true, we don't want it to do that, we want it to kill these parasitic entities. Much like one doesn't swat a mosquito because one will truly miss the amount of blood she's taking.
- ralph84 2mo agoNo one? Mutual funds have managed to attract $33 trillion trading once a day. The demand for millisecond-level trading is almost entirely from a very small group of firms profiting from it.
- loeg 2mo agoAnd they are steadily losing new investment dollars to ETFs, which trade interday. I don't think interday trading is why ETFs are more attractive to all or most investors, but a 0.000001% (or whatever) cost advantage just falls below the noise floor. It isn't worth any other tradeoff.
- naveen99 2mo agoThen the real trading will just move to hyper liquid or another platform that allows trading in real time.
- Retric 2mo ago> zero fee trading Such wonderful marketing terminology. That’s not actually free, the cost of trading with less information is quite high.