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Just how profitable is HFT anyways? What kind of returns do HFT traders get?
by lifeformed 13y ago
Just how profitable is HFT anyways? What kind of returns do HFT traders get?
- mverwijs 13y agoIn the Netherlands, there is a yearly list of the most rich people called "The Quote 500". Of those 500 richest dutch, I think about 15 are HFT owners and employees. See: http://www.amsterdamtrader.com/2012/10/duyfken-sails-into-quote-500.html http://www.amsterdamtrader.com/2012/10/duyfken-sails-into-qu...
- kasey_junk 13y agoDepends. It is mostly a zero sum game, so all told $0. Of course, some people make lots and some people make -lots.
- HockeyPlayer 13y agoWhile intraday trading as a whole is zero-sum, the HFTs are taking profits from other traders, not from each other. HFTs as a group are profitable.
- kasey_junk 13y agoIt's hard to know how profitable HFTs are on the whole as for the most part they are very private. That said some very big names on HFT have recently laid folks off. As someone who hires and interviews in this space, HFT firms seem largely the same as old trading firms were. Boom bust cycles that comer and go as profitable trades shelf life expire.
- adambratt 13y agoA good amount of HFTs fail. I've heard numbers ranging from 70%-90% of new HFTs fail within their first 2 years. Very similar to startups when you think about it. Also, HFTs are most definitely taking profits from each other. In fact, in a lot of cases the faster, more successful HFTs kill off the new ones to the market. Not to mention there are a good number of predatory HFTs who exist solely to game other HFTs