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Yes, one of the things people do is arbitrage price differences between exchanges. That's great though! The fact that people are constantly doing this means tha
by harryh 13y ago
Yes, one of the things people do is arbitrage price differences between exchanges. That's great though! The fact that people are constantly doing this means that I can trade on any given exchange and be really confident that I'm getting the best price.
- AnthonyMouse 13y agoExcept that the continued profitability of HFT is proof that you aren't getting the best price. The HFTer is getting the best price and profiting by buying from or selling to you at something other than the best price.
- harryh 13y agoNo, it's not proof of that. You misunderstand what HFTs are doing. They are in the business of selling liquidity. You have to pay them for that. Luckily the cost of liquidity (due to automation & competition) has gone down by a factor of 10 which is great for you (and everyone else)! Brad Katsuyama (weirdly the hero of the Michael Lewis book) is in the business of making sure you DON'T get the best price. The HFTs are working against him to make sure you do.