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re: What is the Money Board's opinion on high frequency trading?
Posted on 4/2/14 at 10:56 pm to reb13
Posted on 4/2/14 at 10:56 pm to reb13
These firms are using available resources to obtain public data milliseconds before others and profit on it. I'm not sure that you can call it front running or not, and it's definitely not insider trading. Like most arbitrage opportunities, the market has caught up and HFT firms are executing less trades and making less profit than they were a few years ago.
On the outside, and without using all of the sensationalizing terms(rigging), this is American capitalism at its finest. I think the real question is whether or not this causes unnecessary volatility in the market. There are some places that HFT arbitrage has a place, like stocks that trade in multiple countries keeping their prices in line, but I can't honestly say I know enough about the current HFT trading procedures and regulations to agree or disagree on the volatility debate.
On the outside, and without using all of the sensationalizing terms(rigging), this is American capitalism at its finest. I think the real question is whether or not this causes unnecessary volatility in the market. There are some places that HFT arbitrage has a place, like stocks that trade in multiple countries keeping their prices in line, but I can't honestly say I know enough about the current HFT trading procedures and regulations to agree or disagree on the volatility debate.
Posted on 4/2/14 at 11:08 pm to Chris Farley
I agree with all of this. The big guy putting the little guy down is an easy archetype to sell these days which really is an oversimplification.
These guys do not really affect long run market trends so it does not really affect me that much.
These guys do not really affect long run market trends so it does not really affect me that much.
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