Re:What value do we create here?
by alttab on Tuesday April 06, 2010 @08:59AM
(#1244467)
He all but said he create the basis of yet another High Frequency Trading firm.
I had an interview with one in the past and while the models that they used were fascinating and I could get lost in them forever driven by pure mathematical interest - it seems unbalancing.
While HFT does provide liquidity and the ability to instantly make a market, it also makes companies and trades look more liquid than they are. More than half of the stock exchange's trades are made by high frequency traders.
There are ups and downs and each situation should be weighed individually.
Overall, I'd say the epiphany that the author had is sadly something that many people miss. We then turn around and we wonder why the world is such a bad and dangerous place.
I had an interview with one in the past and while the models that they used were fascinating and I could get lost in them forever driven by pure mathematical interest - it seems unbalancing.
While HFT does provide liquidity and the ability to instantly make a market, it also makes companies and trades look more liquid than they are. More than half of the stock exchange's trades are made by high frequency traders.
There are ups and downs and each situation should be weighed individually.
Overall, I'd say the epiphany that the author had is sadly something that many people miss. We then turn around and we wonder why the world is such a bad and dangerous place.