High Frequency Trading

[don]

tip of the hat to Jesse's Cafe Americain . ..

[don]

Re: High Frequency Trading

it's the dumb money

it's the low hanging fruit

that's dinner

it's the bread and butter

it's all these algos do, is detect when that is happening

it's all about figuring out when the institution is buying and selling

they're just going to skim a little off the top

it's death by a thousand cuts

you'll get picked apart as it travels through the system . . .

(from the video)

[photon555]

Re: High Frequency Trading

Here's a link to a few bizarre stories. The first one, "The Exchange," may offer a little relief from the relentless oppression of Wall Street. If only it could be true.

I think the author is quite talented even though unpublished, except by himself, of course.

http://madscienceunlimited.com/fiction/

[lektrode]

Re: High Frequency Trading

"....looking back on that day, i lost faith in capitalism - or at least what we had built..."

all to make pennies.

= best evidence eye have seen to date to demand a TRANSACTION TAX

[vt]

Re: High Frequency Trading

Agreed, but it shouldn't apply to anyone but the high frequency traders.

The individual investor should not be affected. An individual investor who in a 401K plan should not have his or her fund have to pay. But if the mutual fund has a side business to trade only high frequency then they should pay.

[shiny!]

Re: High Frequency Trading

Agreed, but it shouldn't apply to anyone but the high frequency traders.

The individual investor should not be affected. An individual investor who in a 401K plan should not have his or her fund have to pay. But if the mutual fund has a side business to trade only high frequency then they should pay.

Correct. But the way our government works, the law will be written so that individual investors are the ONLY ones who have to pay the transaction tax. High frequency traders will be exempt.

[lektrode]

Re: High Frequency Trading

as eye have seen it, such a 'transaction tax' _would_ be pennies per.
thus wiping out most of the incentive of the quants to mess around, with the risk being that infamous 'fat finger' day in may a couple years back - so such a tax could be considered a benefit FOR the _investing_ public - and a constraint on the raw gambling and the associated and quite unproductive/unnecessary risks that these hi-freq exploits have foisted upon the markets - all so that a few hotshot math/computerjocks can skim _pennies_ ?

not withstanding the risks of giving the political class yet another skim off the top would create.

so yeah, theres a tradeoff - but methinks this tax wouldnt cost the investing public a thing - or what, another few cents per trade?

considering the savings that have come from NOT having to pay 100's to a broker just to buy stock (my first ever stock buy cost me something like 115bux - for 500shares/3grand worth of PLUG - thats now worth about 30bux... sigh..... ;)
to keep this hi-freq crap from happnin?

priceless, IMHO