> HFTs don't have customers. They are trading on their own books.
This is just plain false. Knight trading is a HFT firm that trades both their own book and on behalf of clients.
Infact there is a large market of HFT firms that trade on behalf of clients.
As always the term HFT confuses people. HFT doesn't say anything about buy or sell side, it mearly indicates that atleast one of the following is true:
- the firm has a high order to fill ratio, with most orders being live for only fractions of a second
- holds positions for under a few seconds,
- tries to make money by collecting the liquidity fee
- engages in price arbitrage across multiple exchange venues.
This is just plain false. Knight trading is a HFT firm that trades both their own book and on behalf of clients.
Infact there is a large market of HFT firms that trade on behalf of clients.
As always the term HFT confuses people. HFT doesn't say anything about buy or sell side, it mearly indicates that atleast one of the following is true:
- the firm has a high order to fill ratio, with most orders being live for only fractions of a second
- holds positions for under a few seconds,
- tries to make money by collecting the liquidity fee
- engages in price arbitrage across multiple exchange venues.