2 ms·
> trade something like $500B/day of volume or like $125T/year Trade volume is meaningless in the face of HFT. The very actions you’re defending prove the numbe
by Retric 2mo ago
> trade something like $500B/day of volume or like $125T/year
Trade volume is meaningless in the face of HFT. The very actions you’re defending prove the numbers you just presented have zero relevance and could increase by 100x with zero benefit to anyone.
However step back a second. Quoting a number roughly equivalent to global GDP is frankly silly here, but it’s an easy enough mistake to make when your basic premise is inherently flawed.
- loeg 2mo ago(Trade volume is relevant because it's how market makers make revenue. They make, in aggregate, at most half a penny per share traded.)
- Retric 2mo ago> No. Combined, it is still de minimis. US equity markets alone trade something like $500B/day of volume or like $125T/year. If that was what you where trying to describe the second sentence is unconnected to the first. > half a penny per share traded That’s far from de minimis. Rebalancing a portfolio now becomes quite expensive over a lifetime. You lose 0.5c selling and 0.5c buying, on say a 10$ stock and that’s 0.1% per transaction, and you don’t rebalance once.