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.

Comments

Post a Comment

Popular posts from this blog

Learn Economics

Image
Learn economics. Topics in Economics can give even the newbie insights into how the economies of the world work with a focus on China and the USA. There are 30 topics listed with articles on those subjects, as well as a glossary of terms.
I have written a lot of vetted articles that are exclusive** to Talkmarkets. Sorting a portion of them by subject will give the reader an opportunity to make sense of it all. I am adding a glossary of terms at the bottom of this page.

For readers interested in economic subjects of the day, these top 30 themes are my efforts to make understanding economics easier:

I have pinned the following article to the top because it is an insight into my personal life, as well as a commentary on isms. Capitalism is still the greatest system for creating wealth. However, it is often mixed, and mixturism is a factor in its success or failure:

Dangerous History Repeats

1. China! 


Trump May Be Wrong About Winning a Trade War
Keynes and Trump Tariffs
The Achilles Heel of Tru…
Read more

The Poison of Trump Comes From Murray Rothbard, Fascist Divider

There is further study in the articles I have cited for you at the end of this article. People must, must understand that Donald Trump is a divider of races and ethnicity, because at heart he is a fascist. Fascism seeks the purity of the races. Fascism is the opposite of what America stands for.  Keep in mind that Donald Trump is highly influenced by Anarcho Capitalist, Murray Rothbard. This is an email I sent to an author online. It is slightly muddled, but overall quite accurate in its assessment of Libertarian Murray Rothbard:

Hi Steve,
I agree with your article on Rothbard, mostly. However, as a British court ruled, Zionism is not the essence of what it means to be Jewish. Therefore, I hate antiSemitism, and embrace antiZionism. I have both religious and non religious reasons for taking this stand. And the court absolves me of racism. After all my natural father was Jewish. And more and more Jews hate Zionism. And Zionism is quite multiracial at this point.
So, Trump actually is …
Read more

John Mauldin Discusses What Could Go Wrong

This article was first published by me on Talkmarkets: http://www.talkmarkets.com/content/bonds/john-mauldin-discusses-what-could-go-wrong?post=118623&uid=4798

John Mauldin published an article regarding the economics of Donald Trump. I share many of his views. I think the article deserves to be discussed further.

It isn't as if John Mauldin is happy with the continual drive toward negative yields and the new normal. I believe he is like many, willing to fight for higher interest rates within reason and within the economic boundaries that exist. He is on board with the Fed, unlike other central banks, and is willing to risk recession to avoid negative rates:

Meanwhile, the Fed is in the middle of a long-overdue policy turn. There’s still a risk that they will find they started tightening just in time for a recession, which is also long overdue. I was convinced last summer that they would push rates negative in that scenario. Negative rates could yet happen, but I think they wi…
Read more