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HFT / algo-trading firms are NOT generally trying to make a buck on market momentum. They're generally trying to make a buck by market making. They're buck (or
by harryh 12y ago
HFT / algo-trading firms are NOT generally trying to make a buck on market momentum. They're generally trying to make a buck by market making. They're buck (or penny really) comes from the bid/ask spread.
- leroy_masochist 12y agoTomato, tomato. They're trying to make markets quicker than anyone else which requires a split-second understanding of directional trends in the spread, i.e., momentum.