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Somebody was on the other side of all those trades and they made a lot of money that day. That's finance. Nobody loses money, no physical damage gets done and
by narrator 12y ago
Somebody was on the other side of all those trades and they made a lot of money that day. That's finance. Nobody loses money, no physical damage gets done and somebody on the other side of the poker table gets all the money somebody else lost.
- noonespecial 12y agoIts probably weirder than that. As soon as their system "lost containment" all of that money probably just diffused into the market like smoke amid hundreds of thousands of trades. There's no "big winner" on the other side of the table grumble at. HFT systems aren't like a bunch of poker players slyly eying one another across a table, they're more like electro-chemical gold miners concentrating gold from the rivers of cyanide sludge pumping up from the financial system mines. Heaven help them if they depolarize.
- SixSigma 12y agoAlso - if they had accidentally made a $450m profit, none of this would ever be public.