Re:Why Do High-Frequency Traders Cancel So Many Orders?
by jandrese on Friday October 09, 2015 @01:34PM
(#10361820)
Retirement savers are losing a cut of every paycheck to HFT when they go and add to their account. Likely multiple cuts if they've diversified. It's basically a tax you pay for not having the best access to the fastest server closest to the database.
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Re:Why Do High-Frequency Traders Cancel So Many Orders?
by tptacek on Friday October 09, 2015 @01:54PM
(#10362038)
They are not. The largest, best-regarded fund manager in the world (Vanguard) is on the record saying that they've benefited from HFT.
Re:Why Do High-Frequency Traders Cancel So Many Orders?
by wcummings on Friday October 09, 2015 @05:34PM
(#10363411)
Link?
Re:Why Do High-Frequency Traders Cancel So Many Orders?
by vegabook on Friday October 09, 2015 @01:39PM
(#10361885)
HFT on average narrows the bid offer. Retail (i.e. small) investors benefit. Human market makers lose out. Without HFT your little old lady retirement angel would be paying much more to a rapacious human market maker.
The point is that it is not the end users who are getting hurt. It's the old monopoly - the human market makers.
DISCLAIMER: I (was) a HUMAN market maker.
Re:Why Do High-Frequency Traders Cancel So Many Orders?
by ctlby on Friday October 09, 2015 @02:20PM
(#10362245)
It's not a tax, it's the price of immediacy. You can either work your orders yourself (which doesn't in the least require speed), or you can pay a concession. It has always been this way and always will. HFT has made that concession the lowest it has ever been for the vast majority of market participants.