4 ms·
> However it does a worse job at providing price stability. Isn't this only true if you measure price stability based on amount of changes in the price, but n
by wdewind 12y ago
> However it does a worse job at providing price stability.
Isn't this only true if you measure price stability based on amount of changes in the price, but not magnitude of those changes? How can they lower the spread but simultaneously decrease stability?
- btilly 12y agoThe problem happens if all of the algorithms make the same decision at the same time and suddenly all stop making the market. See the flash crash for the best known example.