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Unless I misunderstand it seems you're pointing out a benefit of automated electronic trading, not HFT. Most people distinguish between the two when arguing tha

Unless I misunderstand it seems you're pointing out a benefit of automated electronic trading, not HFT. Most people distinguish between the two when arguing that HFT is detrimental.

dlp211 12y ago
And on top of that, how many of us are actively trading day in and day out? The added value there doesn't benefit the vast majority of society. EDIT: People with pension funds, 401k's, IRA's, and the like are not trading day in and day out. They typically purchase funds which do the trading on their behalf. Most of these funds are controlled by institutions that aren't subject to be skimmed by the MM's as they are the MM's themselves.
- bboreham 12y ago
  Anyone with a pension fund?
- seeingfurther 12y ago
  I'll say it more plainly. Long term or short term holders of stock... doesn't matter... if you are invested in the market you need to exit or enter a trade. Today you get less screwed than you did twenty years ago, that's a fact.
Nimitz14 12y ago
That's what HFT are. This critique of Michael Lewis recent book goes into HFTs: https://scottlocklin.wordpress.com/2014/04/04/michael-lewis-shilling-for-the-buyside/ https://scottlocklin.wordpress.com/2014/04/04/michael-lewis-... > Back in the days of pit traders, if you threw a huge order at the pit, you might get a fill on a couple of round lots. The rest of the pit is going to change their prices, because they figure anyone swinging 10,000 or 100,000 share orders around must be informed traders. If they’re informed traders, they need to pay for their immediacy. Informed traders may be criminal insider-trader creeps, they may be people with really good trading strategies; it doesn’t matter -they’re informed somehow: they know stuff. If the market maker doesn’t adjust their prices in front of an informed trader, the market maker will go bankrupt. That’s market economics 101.

Unless I misunderstand it seems you're pointing out a benefit of automated electronic trading, not HFT. Most people distinguish between the two when arguing that HFT is detrimental.

dlp211 12y ago

And on top of that, how many of us are actively trading day in and day out? The added value there doesn't benefit the vast majority of society. EDIT: People with pension funds, 401k's, IRA's, and the like are not trading day in and day out. They typically purchase funds which do the trading on their behalf. Most of these funds are controlled by institutions that aren't subject to be skimmed by the MM's as they are the MM's themselves.

bboreham 12y ago
Anyone with a pension fund?
seeingfurther 12y ago
I'll say it more plainly. Long term or short term holders of stock... doesn't matter... if you are invested in the market you need to exit or enter a trade. Today you get less screwed than you did twenty years ago, that's a fact.

Nimitz14 12y ago

That's what HFT are. This critique of Michael Lewis recent book goes into HFTs: https://scottlocklin.wordpress.com/2014/04/04/michael-lewis-shilling-for-the-buyside/ https://scottlocklin.wordpress.com/2014/04/04/michael-lewis-... > Back in the days of pit traders, if you threw a huge order at the pit, you might get a fill on a couple of round lots. The rest of the pit is going to change their prices, because they figure anyone swinging 10,000 or 100,000 share orders around must be informed traders. If they’re informed traders, they need to pay for their immediacy. Informed traders may be criminal insider-trader creeps, they may be people with really good trading strategies; it doesn’t matter -they’re informed somehow: they know stuff. If the market maker doesn’t adjust their prices in front of an informed trader, the market maker will go bankrupt. That’s market economics 101.