The Earth is concave. Don't transpacific cables travel less distance?
Yeah I'm pretty sure cables will always beat satellites over the same distance. One interesting idea I heard was to string stationary drones that would relay microwaves across the ocean, similar to what was done with the relay towers between Chicago and New York.
Right now, the fastest path from Chicago to London is to bounce radio signals off the ionosphere, which lands them in Lithuania, and then microwave back to London.
I find it interesting how HFT apparently creates no economic value whatsoever. The value is siphoned off more traditional market trades.
Lots of things dont create economic value but that doesnt make them bad. Why so you find it interesting?
What kind of things are you referring to? People writing poetry? Or someone helping their elderly neighbor shopping? Or misleading advertising?
Some things that don't create economic value are extremely good and valuable.
Bit it's obvious that spending resources to do nothing useful is objectively bad, even if it happens to redistribute wealth to you.
If the ask is at $8.03 and you are first in queue at $8.01 all the orders in $8.03 and $8.02 have to be filled before you get filled so you have plenty of time to cancel your order.
Assuming you mean bid. If the the size is only 10 @ 8.03 and 1 @ 8.02 and 8.01, then if someone is looking to sell 100 at market price it will be a problem. The sell order will go through many levels after filling yours and it will all happen at the same time.
Apparently that doesn’t happen often enough to make the strategy unprofitable
Yeah I'm pretty sure cables will always beat satellites over the same distance. One interesting idea I heard was to string stationary drones that would relay microwaves across the ocean, similar to what was done with the relay towers between Chicago and New York.
Right now, the fastest path from Chicago to London is to bounce radio signals off the ionosphere, which lands them in Lithuania, and then microwave back to London.
Wow, are there HFT firms doing this? How reliable is it?
I find it interesting how HFT apparently creates no economic value whatsoever. The value is siphoned off more traditional market trades.
On the contrary, equities markets need the liquidity HFTs provide to function well. Before HFTs there were human market makers who played a similar role in equities markets, but charged far more to do it. HFT is a story of efficient technology bringing prices down a lot and shrinking the profitability of an existing industry. I’m sympathetic to the view that a lot of resources have been poured into making trades happ…
> people keep finding that letting the fastest system get the trade actually does work better than alternative approaches.
What does "work better" mean in this context?
Did the exchange find it increased their profits?
The Earth is concave. Don't transpacific cables travel less distance?
Yeah I'm pretty sure cables will always beat satellites over the same distance. One interesting idea I heard was to string stationary drones that would relay microwaves across the ocean, similar to what was done with the relay towers between Chicago and New York.
Right now, the fastest path from Chicago to London is to bounce radio signals off the ionosphere, which lands them in Lithuania, and then microwave back to London.
Wow, are there HFT firms doing this? How reliable is it?
It seems like the information being disseminated by the article is just the mapping between the name and the concept, since every participant already knows that they want to be at the front of big levels and can take from the orders behind them if they don't like the fill.
Nobody is going to start the next rentec after reading this article, but for people new to the subject I think it is quite an approachable intro to some of the practicalities of market microstructure and how they affect trading strategies.
It's helpful, but even after all the work to be on all the right levels one still has a difficult prediction problem to decide when they don't like a fill. I guess the point is that this prediction problem (conditional on fills at front of big queues, should I dump it?) may be easier to make into a profit because your predictions can be of only moderate quality if your downside is just fees. In crypto d1, the fees are maybe small enough to support this, but other concerns make it difficult. As mentioned elsewhere in the comment section, one may learn that their downside is often not just fees.
The Earth is concave. Don't transpacific cables travel less distance?
The speed of light in vacuum is faster than in fiber optic cable, although presumably there are already microwave signaling networks like someone else mentioned
> presumably there are already microwave signaling networks
Interesting, everstrike is a option market that sells a type of option they call an everlasting option. They say it was co-invented by non other than SBF: https://www.paradigm.xyz/2021/05/everlasting-options
vanilla options (edit: pricing model) were invented by LTCM and they blew up on degenerate bets too looks like it just comes with the predisposition
we need not confuse blowing up one's own portfolio with stealing ten billion dollars