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Trading (as in HFT) isn't the same as investing. While the mechanics can sometimes be similar, a trader is different from an investor. What HFT does is segment

Trading (as in HFT) isn't the same as investing. While the mechanics can sometimes be similar, a trader is different from an investor. What HFT does is segment the market. It's probably best described as a form of arbitrage. Arbitrage is necessary, but in a good market hopefully it is pushed to some form of equilibrium. HFT has an impact on the trading market. However, that doesn't automatically extend to investment.

astrodust 14y ago
HFT is like a million tiny trolls underneath the bridge trying to extract their tax.
- jarek 14y ago
  ... replacing one big troll on the bridge that used to extract more than the million tiny ones' total...
  - astrodust 14y ago
    The reason spreads have come down is mostly due to better information on the part of the traders. Electronic markets made this possible.