oojgaoj

4 ms·

1. 1.▲
   by oojgaoj 11y ago

   First of all, stop conflating HFT with other, actually useful, forms of algorithmic trading. Secondly, when an HFT sells out their inventory (which is the most typical response to vol), they consume liquidity on their way out. If they held
2. 2.▲
   by oojgaoj 11y ago

   This isn't what HFTs do. One common HFT trick is exactly the opposite of what you wrote: they'll attempt to identify probable sellers of large blocks who are disguising their actions by using smaller blocks (they can identify this
3. 3.▲
   by oojgaoj 11y ago

   There's an important fact to remember though: HFTs aren't really making markets. HFTs make markets when markets least need liquidity, and they consume liquidity by fleeing the markets when it is most valuable. As such, an HFT prov
4. 4.▲
   by oojgaoj 11y ago

   > We just need to see the problem as "who can provide liquidity and stability to a market" rather than "who has an unfair advantage" And essentially every single analysis of THAT problem says that HFTs consume liquidi