Spread/Pairs Trading. High Volume, High Speed, High Stress. 1 reply
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DislikedRidiculous!! This is total destruction of market efficiency. If you clamp down "high frequency" trading, who's gonna provide the orderflow? Where is the market liquidity going to come from? The bid/ask spread on pairs like E/U is going to be 10 pips again let alone price gaps everywhere!! Finally we have a near-efficient market, and they have to come in and ruin it!
IF they really want to "clamp down" on "high frequency" trading, they would've done it long time ago. Honestly, those big brokerage houses do this lot more frequently and in...Ignored
DislikedSorry for intruding and littering on your thread. And thanks for the heads upIgnored
DislikedGuys, that article gets it all wrong.
Read the real news instead: http://uk.reuters.com/article/2011/0...75Q1TN20110627
It's about controlling the risk of HFT, not about forbidding it. The banks love HFT for the commissions they provide. And the banks who can't handle the heat don't enter into the kitchen.
To put it another way: your broker checks your account for margin call in (near) real-time. But most of the big guys, who do HFT, are only checked for margin call once a day. So if their algo goes insane,...Ignored
DislikedI'm just saying that there will be liquidity like there was before. And I'd love to know some small retail folks doing HFT. And is HFT the sole reason for the reduction in spreads? And as traders don't we profit from more market ineffeciency?Ignored
DislikedI think the main reason for this type of action is to protect against similar outcomes that computer can cause chaos
although may 6 2010 was not really the fault of high speed trading and more to do with other aspects of computer.. the point being.. a big institution having a computer trade can lead to unintended consequences
http://www.youtube.com/watch?v=AFlmSp4sIogIgnored