There are some exchanges like that or at least many of them have trading sessions that do exactly that (pre-open, for example).nakatago wrote:It'll be more fun then if these exchanges employ some sort of synchronization mechanism where trading will only happen at certain fixed-intervals.
Sounds good... except... if someone has made money, someone else had to lose money. The original seller would have made additional money, had not the HFT people bought low and sold high and stole the difference for themselves. It is quite possible that the original seller would have hooked up with the higher price, had not the HFT vultures swooped in.Sergei82 wrote:And how come absence of arbitrage deprives investors of money? If they earn on arbitrage alone, they are not investors, they are arbitrageurs, isn't it?
You are looking only at one side - winners. There are losers in HFT as well - as many as winners. In any case, nobody could beat the market itself by now. There are only 3 ways to get money out of this:Strong Eagle wrote:...HFT people bought low and sold high and stole the difference for themselves...
Strong Eagle wrote:Sounds good... except... if someone has made money, someone else had to lose money.
Both of them are selling, and we act as the buyers. They get the money, we lost it. Maybe "steal" is too strong for this. But jargon's jargon. They "manage their services" in a better way. But, personally speaking, I see "trading" as legalized "gambling". High risk, high return. The rules can be overwritten by "the admin"Sergei82 wrote:How about Bill Gates, Donals Trump etc?
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