4 ms·
HFT does not add liquidity, but they do squeeze spreads in liquid contracts. It's some what good for retail, but terrible for institutional investors, which hur
by confluence 13y ago
HFT does not add liquidity, but they do squeeze spreads in liquid contracts. It's some what good for retail, but terrible for institutional investors, which hurt retail on the backend. HFT is just a front running operation in those cases.
- nandemo 13y agoWhat is that definition of adding liquidity that doesn't include "tightening the spread"?
- confluence 13y agoJust because you lowered my home loan fees while the sun shone, doesn't mean that you'll be there when winter comes and the shit hits the fan. Liquidity is always there. Until it ain't.
- andylei 13y agowhat's the alternative? are specialists offering liquidity in markets that HFTs aren't?
- im3w1l 13y agoSomething about being able to buy a decently sized portion without moving the price to much.