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by tnone 3235 days ago
Healthy competition optimizes for value, HFT is just optimizing for profit. These are not the same. It's paperclip maximizing, using an economic Maxwell's demon.
2 comments

> Healthy competition optimizes for value, HFT is just optimizing for profit.

Value is measured by profit, if what the HFT's were offering was of no value, there would be no profit in it as no one would buy their liquidity. HFT sell liquidity, that there are willing buyers proves their value. Quite simply, you do not know what you are talking about.

> HFT is just optimizing for profit

And low-frequency trading isn't?