> I'm wondering if someone here can explain to me the value in HFT for anyone other than the people doing the trading.
Well I guess I'm very biased but here's my stab at it.
High Frequency trading is at the for front of alot of technology such as ASIC's, Infiniband networking gear,and low latency OS and networking stacks.
You could argue that they help push these technologies forward by providing the first customer for these areas.
Liquidity has gone up with the advent of High Frequency trading but like someone else has said its hard to disentangle all market factors to say this is due to HF Trading.
> Something about it just doesn't ring true to me. If it is in fact true I'd love to hear an explanation.
To be fair, this statement is the equivalent of "I've heard evolution is a well followed theory but something about it doesn't ring true to me."
What sort of explanation would you like that hasn't already been said 100's of times by people more qualified than me?
You haven't said what you don't like or disagree with about the many existing explanations:)
Well I guess I'm very biased but here's my stab at it.
High Frequency trading is at the for front of alot of technology such as ASIC's, Infiniband networking gear,and low latency OS and networking stacks.
You could argue that they help push these technologies forward by providing the first customer for these areas.
Liquidity has gone up with the advent of High Frequency trading but like someone else has said its hard to disentangle all market factors to say this is due to HF Trading.
> Something about it just doesn't ring true to me. If it is in fact true I'd love to hear an explanation.
To be fair, this statement is the equivalent of "I've heard evolution is a well followed theory but something about it doesn't ring true to me."
What sort of explanation would you like that hasn't already been said 100's of times by people more qualified than me?
You haven't said what you don't like or disagree with about the many existing explanations:)