Re:High-Frequency Traders Push Closer to Light Speed with Cu...
by Arnt on Wednesday December 16, 2020 @10:11AM
(#25443455)
They do, in a way...
A HFT typically has a given stock of Siemens and offers to buy and sell. Suppose one has 100 shares and offers to buy and sell two, you want to buy forty. You'll get two, and the HFT will put two more on the market, at slightly higher prices, and wait to see whether you buy.
How much higher/lower? Obviously they'd like to raise the price quickly to the highest price you'll pay, without raising it so high that you buy from someone else, and equally obviously you don't tell them what price that is. Will the HFT firm's software have better heuristics than your broker's?
A HFT typically has a given stock of Siemens and offers to buy and sell. Suppose one has 100 shares and offers to buy and sell two, you want to buy forty. You'll get two, and the HFT will put two more on the market, at slightly higher prices, and wait to see whether you buy.
How much higher/lower? Obviously they'd like to raise the price quickly to the highest price you'll pay, without raising it so high that you buy from someone else, and equally obviously you don't tell them what price that is. Will the HFT firm's software have better heuristics than your broker's?