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by kasey_junk
4305 days ago
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There are a lot of misconceptions in your comment that we need to unpack. 1) there isn't that much money in HFT. It has an ever decreasing number of players working for an ever decreasing amount of profit. Other areas of finance such as hedge funds, traditional investment banks, and derivatives creation are much bigger and have just as many "smart" people working in them. Don't get me started on advertising... 2) HFT doesn't turn time into money. It buys & sells risk in the form of liquidity. One way that it does this more efficiently is by being able to get in and out of positions fast. HN, predictably, has a huge bias towards the capital raising/allocation side of the financial markets, but this is not why most participants are involved. Hedging risk is another huge (probably bigger) reason the markets exist. HFT allow that risk to be hedged more cheaply and more predictably so they provide value to the rest of the market. |
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