The Motley Fool Discussion Boards

Previous Page

Investment Analysis Clubs / Macro Economic Trends and Risks


Subject:  Re: YOU are married to High Frequency Trading Date:  10/11/2012  5:33 PM
Author:  bjchip Number:  405821 of 545714


I tried but failed to understand how a fractional cent or percent tariff/tax/fee applied to every trade is going to make it impossible for the algorithmic trading to continue.

It WILL make certain algorithms unprofitable, and the class of algorithms it "breaks" seems to me to be the ones we'd want broken.

This is not about going "back to humans" in the exchanges. I have nothing against algorithms.

It is merely a matter of bringing speed-of-light arbitrage back under control and the reasons for trading back into the realm of economics, rather than electronic delays and advantages.


Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us