3 ms·
Not really - that's ordinary arbitrage, not HFT arbitrage. No "actual" investor will profit from the fact that prices converge in 0.1s instead of 1.1s. They jus
by tomp 12y ago
Not really - that's ordinary arbitrage, not HFT arbitrage. No "actual" investor will profit from the fact that prices converge in 0.1s instead of 1.1s. They just wast hume sums of money building fiber optics on the direct line from Chicago to NY.
- mlrtime 12y agoThere are 1000's of trades that occur in that second and not only HFT. Someone will benefit if they just happen to cross the spread in that .1s. If you are unloading 10,0000 shares the speed arbitrage could save you real money.
- ycombobreaker 12y ago> that's ordinary arbitrage, not HFT arbitrage. As it turns out, the "HFT" version of any trading strategy is _just like_ the "ordinary" version, but faster. You could say that they "disrupted" the older arbitrageurs due to their collective technology R&D.