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Authored by: Anonymous on Wednesday, April 18 2012 @ 01:45 PM EDT |
I don't think they are "evil" in the sense of intentional
malice, but it is apt to describe high-frequency traders as
parasites. They are essentially taking advantages of lags in
price changes between markets on opposite sides of the world
to suck a tiny fraction of the money out of a huge amount of
trading.
It's more or less the same idea as insider trading, with the
difference that the timing edge is acquired via fast
hardware and computational efficiency, rather than
privileged information. I don't see how any honest person
could say with a straight face that high-frequency trading
does anything whatsoever to make the world a better place.
It's just a high-tech gaming of the system to divert a tiny
sliver of a vast revenue stream into a company's coffers.[ Reply to This | Parent | # ]
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- Speed trading - Authored by: Anonymous on Wednesday, April 18 2012 @ 11:00 PM EDT
- Speed trading - Authored by: Anonymous on Thursday, April 19 2012 @ 09:55 AM EDT
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