How HFT Has Killed Market Basics - UrbanSurvival

How HFT Has Killed Market Basics - UrbanSurvival



Just one example in this great article: 



Say you enter an order to buy 100 shares of XYZ.  The trading house
you’re with might buy 1,000 shares for a fraction of a second – just
long enough to drive the price up.  Depending on machine speeds, another
outfit notices the price and buys 1,000 shares, too.  And a third,
perhaps.

By the time your poor order for 100 shares is actually “filled” what
happens?  You pay a fraction of a cent more.  Regulators don’t care
because they view it as “petty crime” but it happens millions of times
per day so it adds up.

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