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> over 70% of the volume on the major exchanges these days. Very little of what happens on the exchanges anymore is directly attributable to long positions. th
by andylei 14y ago
> over 70% of the volume on the major exchanges these days. Very little of what happens on the exchanges anymore is directly attributable to long positions.
this isn't the same as being 70% of price movement. HFT is comprised mostly of market makers, who have books that, over the course of the day, are close to net zero. they do a lot of buys, but they also do a lot of sells.
most price moves over the course of a day are actually driven by people who take positional views, and buy or sell large positions. so actually, we're not really that far from kansas
- murbard2 14y agoThat's not the whole story. If 70% of the volume is HFT, it means you necessarily have a lot of HFT trading against HFT, which means a lot of HFT is going to be liquidity taking. Fortunately, that's only on public exchanges. Most of the liquidity provision happens before trade even hit those exchanges.
- niggler 14y ago"we're not really that far from kansas" Funny given that one of the largest high frequency trading firm, Tradebot, is based in Kansas City MO (not that far from Kansas)