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HFTs certainly are making money. But they're making money by making the market. And they're making a lot less money than they used to which you can see because
by harryh 13y ago
HFTs certainly are making money. But they're making money by making the market. And they're making a lot less money than they used to which you can see because spreads have shrunk dramatically. This is because computers can do this job much faster and cheaper than the humans who did it before could.
It's the same kind of automation we've seen in many other industries.
- dredmorbius 13y agoBut they're making money by making the market. That's ... an unsubtantiated assertion. Lots of evidence to suggest the situation's otherwise, at least in large part. There was an excellent ACM paper posted to HN a few weeks back: http://queue.acm.org/detail.cfm?ref=rss&id=2536492 http://queue.acm.org/detail.cfm?ref=rss&id=2536492