System Trading Blog

Make Your Money Work Harder

High-Frequency Trading Explained

leave a comment »

http://www.pbs.org/nbr/site/research/learnmore/inside_high_frequency_trading_100524/

Good resource for an inside view of high frequency trading. Both Manoj Narang and Larry Tabb are well versed in the subject.

The bottom line:
1. It´s possible to make money by high-frequency trading in ways it was not possible before.
2. Provision of additional market-making related liquidity is the only benefit to the rest of society (apart from the operators themselves and their investors) from high-frequency trading.

However, the latter is a staple argument to justify the social value of speculation in general.

Advertisements

Written by A.S.

June 2, 2010 at 12:31 am

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: