HFT Value Debate
Comments debate the societal value, liquidity provision, and overall impact of high-frequency trading (HFT), questioning if it benefits markets or merely extracts profits without adding real value.
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Does HFT not make money off that?
Why do you think HFT does not add any value to the world?
Can someone explain what value HFT actually provides to society at large? Why not add a one cent tax to every trade and wipe out HFT completely?
Complacent? Get in on HFT if you feel that it's making it unfair for human traders.
HFT provides liquidity, and extracts a price for providing that value.HFT seems like stealing only because they are using advanced technology methods to make money, whereas in the 1980s and before market makers routinely manipulated the spread and pocketed likely a similar percent of trading profits.At least the online brokerages and pioneers of HFT broke down the antiquated 1/8 stock price ticks and lowered the spread and per share transaction costs.
Are HFTs taking trades that otherwise wouldn't have happened?
Why is this not done in electronic exchanges to render HFT operations pointless?
What’s the value in making HFT not work? What harm is it causing?
Explains how HFT can bring liquidity into a market (at a cost). Useful.
Can someone explain to me the purpose of HFT? Not the economic incentive, I get that, but what does it accomplish? Is it a net benefit to the system? If we arbitrarily limited transactions to human speed would there be some kind of systemwide downside? Are there any good, human readable papers on the benefits of HFT?