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That's my point. For the vast majority of (smaller) flows HFT makes bid/offer tighter. TLDR on the above: HFT makes you pay a fair price for your liquidity requ
by vegabook 11y ago
That's my point. For the vast majority of (smaller) flows HFT makes bid/offer tighter. TLDR on the above: HFT makes you pay a fair price for your liquidity requirement. If you're retail, your liquidity requirement is negligeable. If you're big your liquidity price is high. It's fairer.
In the old human system big funds' artificially high (cheap) liquidity is sponsored by the small player's artificially expensive liquidity and/or market move against him/her before he/she trades.
- foobarqux 11y agoIt's more complicated than you suggest: If informed trading can't capture a good portion of the difference between the "true" price and the current price then there isn't an incentive to do it.