[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

View post   
File: 137 KB, 1200x857, rate_hike_announced.jpg [View same] [iqdb] [saucenao] [google]
921667 No.921667 [Reply] [Original]

Just stumbled upon this documentary and am now 100% against HFT

https://www.youtube.com/watch?v=tCcxr-fyF4Q

Give me one good reason we should incentivize nuclear physicists to leave their fields to siphon money out of the economy

>> No.921680

>>921667
>siphon money
Stocks aren't a zero sum game. So sick of this meme

>> No.921682

To add liquidity to the market.
You do know about liquidity risk, right Anon?

>> No.921702

>>921680
Derivatives are

>>921682
Open outcry added plenty of liquidity and commodities businesses preferred the open outcry system to an automated system

Liquidity has never even been a problem

>> No.921704

>>921680
And stocks are only non-zero sum if enough people believe that in the long run

Computers don't believe anything beyond the next .1 second

>> No.921708

>>921667
>Give me one good reason we should incentivize nuclear physicists to leave their fields to siphon money out of the economy

we're not - there are far more physics PhDs churned out each year than there are places for them in academia - the many who won't get academic jobs need to work somewhere- becoming quants in banks etc.. is one of those areas

HFT itself doesn't require so many people - a lot of the more profitable strategies are run by firms using proprietary capital since they don't require much. There are some hedge funds in this space too but some of them will have closed funds and/or returned funds to investors simply because they're at capacity.

it certainly isn't a field that is causing a brain drain or anything of that nature

>> No.921712

>>921702
Top kek mates
You clearly don't know anything about finance and risk management.
Get a clue,
http://avxhome.se/ebooks/economics_finances/1119990246Liquidity.html
If the market prefer open outcry, why are they being phased out for electronic trading?

>> No.921722

>>921712
The same reason people spend 10 hours a day on facebook and have no actual friends

>> No.921726

>>921722
I don't know what your talking about.
But, they prefer it because they can get the best price on the market.
The Exchange take care of matching the long and short position.
If they want to negotiate some aspect of the deal, they use the OTC market.
The open cry system is outdated.

>> No.921736

>>921726
Electronic exchanges have existed for decades, I'm not at all saying get rid of them
I'm saying that open outcry is better than HTF, especially in derivatives markets

Most HFT isn't even "algorithmic trading"
It's basically fiberoptic front running and scalping for pure arbitrage purposes

>> No.921750

>>921736
>open outcry is better than HTF
Dude what? That statement doesn't make sense

>Front running
Thats buying stock for yourself before your client, HFT have nothing to do with it

>scalping for pure arbitrage
Whats bad about arbritage profit?

>> No.921752

>>921667

someone photoshop money in that one jew's hand instead of the ticket