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High-Frequency Trading Explained

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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.


Written by A.S.

June 2, 2010 at 12:31 am

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