A High Frequency Trader's Apology, Pt 2

Re:A High Frequency Trader's Apology, Pt 2 by harryh on Thursday April 26, 2012 @02:22PM (#3895390)

> How does an HFT, in practice, add liquidity to a market?

Bid/ask spreads used to be 10 cents or more. Now they're generally a penny. That is evidence of a more liquid market.

In practice, this is because computers are now market makers instead of humans so they can do this job at a lower cost.

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Re:A High Frequency Trader's Apology, Pt 2 by mcphilip on Thursday April 26, 2012 @03:06PM (#3895607)

Is there evidence that the bid ask spreads have that substantially declined across the board, or is the decline limited to the most actively churned stocks?

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Re:A High Frequency Trader's Apology, Pt 2 by tazzy531 on Thursday April 26, 2012 @02:32PM (#3895446)

Even fractions of a penny in some cases.

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