Is Fed Making Life Tougher for High-Speed Traders?
- Thread starter OnClose
- Start date
HFT arbitraged dumb traders and now wants to blame the Fed. GTFO. The Fed is in control of the market and thank god. Because if it was free wheeling right now, we'd see split second crashes and rallies, like TV Snow and the HFT algorithms would be fighting eachother to the death and taking the buy and hold crowd down with it.
Explain more please
Quote from halfwaythere:
Explain more please
It is so simple and it is amazing that anything needs to be explained. Two parties meet at the exchange and trade at the price they agree on at the moment of trade. It is free and voluntary. Nobody knows how many transactions a minute is good or bad and what is the correct speed or price volatility. This dynamics helped to create most fluid and free markets in the world that are the backbone of the most progressive economy in the world. Price is known after the trade took place. It is not entitlement program, there is no superior authority setting correct prices and there is no customer service taking returns. The only thing that is being agreed upon is the framework of the market: free and equal access to the marketplace and free flow of market information.
And returning to the beginning of the discussion: the guy should be happy seeing the quote and price movement in response to his trades (and maybe hundreds of others hitting this price) in real time with low commission instead of complaining. Markets are unforgiving and competitive. Many players are there at the same time and everybody wants to make a profit. Since this is zero sum game the profit has to come from somebody and it is called loss.
