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halfwaythere

Registered: Aug 2012
Posts: 95

09-21-12 02:15 PM

Quote from vicirek:

Lack of understanding how the market works and supplanting it with quotes from incompetent and ideologically motivated media.

HFT is about competition and free markets. Markets are not to be confused with entitlement program run by the government and their friends at the Fed.

Explain more please

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vicirek

Registered: Dec 2011
Posts: 366

09-21-12 08:11 PM

Quote from halfwaythere:

Explain more please

It is so simple and it is amazing that anything needs to be explained. Two parties meet at the exchange and trade at the price they agree on at the moment of trade. It is free and voluntary. Nobody knows how many transactions a minute is good or bad and what is the correct speed or price volatility. This dynamics helped to create most fluid and free markets in the world that are the backbone of the most progressive economy in the world. Price is known after the trade took place. It is not entitlement program, there is no superior authority setting correct prices and there is no customer service taking returns. The only thing that is being agreed upon is the framework of the market: free and equal access to the marketplace and free flow of market information.

And returning to the beginning of the discussion: the guy should be happy seeing the quote and price movement in response to his trades (and maybe hundreds of others hitting this price) in real time with low commission instead of complaining. Markets are unforgiving and competitive. Many players are there at the same time and everybody wants to make a profit. Since this is zero sum game the profit has to come from somebody and it is called loss.

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Chausey

Registered: Nov 2007
Posts: 116

09-21-12 08:52 PM

Flash crashing kills confidence in the real market, which lies between two real human beings. The greater good is at stake. If that's free market then so be the consequences of ruining a century old platform to facilitate transactions between real humans.

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Salmon

Registered: May 2000
Posts: 78

09-21-12 09:05 PM

I don´t care about Bernanke and his anti islamic movies. He can trade just with the help of Hollywood, poor boy.

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CT10Gov

Registered: Sep 2012
Posts: 438

09-21-12 09:10 PM

What's the problem here? None of this stuff affects people who invest. Arguably, better executing algorithm adds value to investors.

So who cares if short term traders are impacted? Are the short term traders' welfare more important than the "machines"? What about the machines' designers' welfare? Why are they subservient to that of a scalper?

Quote from Chausey:

Flash crashing kills confidence in the real market, which lies between two real human beings. The greater good is at stake. If that's free market then so be the consequences of ruining a century old platform to facilitate transactions between real humans.

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Chausey

Registered: Nov 2007
Posts: 116

09-22-12 04:20 AM

Again, flash crashing destroys confidence in the market. Machines do not input confidence, while other market participants do. Those people are leaving, volume is decreasing and only the Fed can backstop the market on a daily basis now.

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