Re:A High Frequency Trader's Apology, Pt 2
by SomeCallMeTim on Friday April 27, 2012 @12:40AM
(#3897562)
>Either this logic, that profit is evidence of value destruction, is flawed or capitalism doesn't work.
Strawman. That's not at all what I said.
In this particular case the only time the market really benefits is when the HFT isn't making money. And I didn't say that "because he's making money it's evidence of value destruction." Just that the only example OP was able to point out that was an advantage to the consumer was when the HFT was losing money.
Either this logic, that profit is evidence of value destruction, is flawed or capitalism doesn't work.
You assume that the capital markets are a zero sum game. But by promoting liquidity HFTs make the markets (a) more attractive to play in, and, (b) cheaper for companies to finance themselves from.