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I get why the need to always be one step ahead pushed trading firms to automation. Still, for some reason, this makes me incredibly sad. Maybe it's because I do
by glitchdout 13y ago
I get why the need to always be one step ahead pushed trading firms to automation. Still, for some reason, this makes me incredibly sad. Maybe it's because I don't fully understand how the world and the economy work. Why does it have to be this way?
- woodchuck64 13y agoIt's the co-evolution of parasite and host. These firms are like tape worms, siphoning off nutrients in the hopes the host won't notice. But the host is continually evolving new mechanisms that make it difficult for the parasite to survive. The economy is growing, changing and becoming more efficient, thanks to the internet. If history is any indication, easy-money traders are headed for extinction.
- minimax 13y agoWe use technology to improve efficiencies in every industry in the world, but when we use technology in the capital markets people freak out. I don't get it.
- Nursie 13y agoHuge volumes of money, a perception of it being gambling and playing with numbers rather than productive work, the possibility of screwing over basically the whole of society when it goes wrong, privileged positions for the entrenched traders (people that outsmart the algo-traders get arrested, massive costs to get the millisecond co-lo advantage on HFT etc), total divorce of algo/HFT from the idea of actual investment in companies based on what they do... There are some reasons that people are suspicious of the entire world of finance. HFT and algorithmic trading really exemplify all of the issues some people have with the money markets in the first place.