High-frequency Buying And Selling: Methods, Risks, And The Method Ahead For Hft
For instance, a big order from a pension fund to purchase will take place over a number of hours or even days, and can cause a rise in price because of elevated demand. An arbitrageur can attempt to spot this happening, purchase up the security, then revenue from selling back to the pension fund. Critics argue that HFT firms, with their pace and complex algorithms, could doubtlessly manipulate markets for their profit. While it has proved advantageous over the years through lowered bid-ask spreads and effectivity, it additionally has its…
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