31–40 of 66 posts
Slightly on topic, but could Elon turn starlink into a giant arbitrage opportunity? Once satellite - satellite laser links are up, it could be the quickest link between say NYC and Tokyo
If you want to be the first or close to the first in the queue on a price level, you're there before it becomes big. So then your "risk-free" closing strategy doesn't work, because if you get traded against, you will have to close out your trade at a loss, since the price level is gone (because it wasn't big yet).
But if you wait until the level becomes big, you will no longer be at the front of the queue, so the strategy doesn't work.
Not really sure how this is supposed to be low risk -- I think they're omitting the actual interesting parts of the strategy (that are essential to actually making money). If you want to be the first or close to the first in the queue on a price level, you're there before it becomes big. So then your "risk-free" closing strategy doesn't work, because if you get traded against, you will have to close out your trade at…
I find it interesting how HFT apparently creates no economic value whatsoever. The value is siphoned off more traditional market trades.
I’m sympathetic to the view that a lot of resources have been poured into making trades happen in 1 nanosecond when 100 or 1000 nanoseconds would probably be fine for all practical purposes. The issue is that people keep finding that letting the fastest system get the trade actually does work better than alternative approaches.
I find it interesting how HFT apparently creates no economic value whatsoever. The value is siphoned off more traditional market trades.
I find it interesting how HFT apparently creates no economic value whatsoever. The value is siphoned off more traditional market trades.
A market that was previously dominated by good old boy networks of football players was made massively more efficient and the cost of entry driven to the floor purely based on nerds with math.
To the benefit of effectively every market participant besides said football players.
I find it interesting that an industry that has spent the last 30 years dedicating their best and brightest to panopticon building ad driven navel gazing can continue to act high and mighty about real innovation.
Earlier quoted context omitted.
Lots of things dont create economic value but that doesnt make them bad. Why so you find it interesting?
HFT is frustrating since it creates dubious value and eats up a lot of technical talent in the process I don't think there's a reasonable way to stamp it out, though.. I guess if IEX's anti-HFT strategies were more ubiquitous it'd transform the HFT industry and maybe calm it down a little?
Not really sure how this is supposed to be low risk -- I think they're omitting the actual interesting parts of the strategy (that are essential to actually making money). If you want to be the first or close to the first in the queue on a price level, you're there before it becomes big. So then your "risk-free" closing strategy doesn't work, because if you get traded against, you will have to close out your trade at…
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.
Slightly on topic, but could Elon turn starlink into a giant arbitrage opportunity? Once satellite - satellite laser links are up, it could be the quickest link between say NYC and Tokyo
No, Starlink would not be faster than a terrestrial fiber connection
Slightly on topic, but could Elon turn starlink into a giant arbitrage opportunity? Once satellite - satellite laser links are up, it could be the quickest link between say NYC and Tokyo