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A comment on C++ patterns for low-latency applications including high-frequency trading. Parent comment

Re:C++ patterns for low-latency applications including high-... by calibas on Monday July 08, 2024 @07:55PM (#40911077)
A net negative to society, but a positive for the wealthiest.
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Re:C++ patterns for low-latency applications including high-... by cheonic730 on Monday July 08, 2024 @10:42PM (#40912055)
> A net negative to society, but a positive for the wealthiest.

No.

When your passive index fund manager rebalances every month because “NVDA is now overweighted in VTI, QQQ” the manager does not care about the bid/ask spread.

When VTI is $1.6 trillion, even a $0.01 difference in price translates to a loss $60 million for the passive 401k, IRA, investors.

HFT reduces the bid/ask spread, and “gives this $60 million back” to the passive investors for every $0.01 price difference, every month. Note that VTI mid price at time of writing is $272.49.

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