The EE/IC Design part of me loves this for trying to build a community around what is typically a very opaque and secretive industry. The social justice / millenial part of me hates this for being funded by high frequency trading, of all things. What a colossal waste of resources.
>>The social justice / millenial part of me hates this for being funded by high frequency trading, of all things. What a colossal waste of resources.
It's more efficient now than it used to be - by which I mean the total taken by HFTs is lower than what people used to pay in spreads and commisions. Price discovery is better (you get closer to a fair price if you trade) and spreads are lower. The whole industry that used to prey on spreads and ignorance of retail investors is gone. What not to like about HFT?
The HFT industry creates an investment opportunity that's somewhat detached from business fundamentals. If you can trade on the volatility alone, you no longer need to pick investments based on their future prospects and behaviour.
kayson · · focus · HN ↗
bluecalm · · focus · HN ↗
It's more efficient now than it used to be - by which I mean the total taken by HFTs is lower than what people used to pay in spreads and commisions. Price discovery is better (you get closer to a fair price if you trade) and spreads are lower. The whole industry that used to prey on spreads and ignorance of retail investors is gone. What not to like about HFT?
mitxela · · focus · HN ↗
Maybe they're both bad?
selestify · · focus · HN ↗
shric · · focus · HN ↗
I’d estimate the total global HFT revenue to be 100 billion dollars a year, which is less than Apple and a tiny percentage of all big tech combined.
anon-3988 · · focus · HN ↗
skippyboxedhero · · focus · HN ↗
bluecalm · · focus · HN ↗
Same goes for market making.
If someone is getting rich providing that service - great! Additional bonus is that it's usually very smart people getting the money.
hakfoo · · focus · HN ↗