Hacker News new | ask | show | jobs
by kasey_junk 3800 days ago
Market Makers sell the service of taking on the risk of bridging prices for a good over time. The price for that service is directly correlated with the amount of risk they take on.

HFT reduce the risk of the inventory they hold by being able to adjust the prices of that inventory fast.

HFT Market Makers can therefore price the service cheaper as their risk is less, due to the speed.