https://blogs.lotterypost.com/konane/2009/8/the-lie-of-high-frequency-trading-liquidit.htm konane's Blog: "The Lie Of "High Frequency Trading" Liquidity en-us Lottery Post RSS Generator https://blogs.lotterypost.com/konane/2009/8/the-lie-of-high-frequency-trading-liquidit.htm https://blogs.lotterypost.com/konane/2009/8/the-lie-of-high-frequency-trading-liquidit.htm Thu, 27 Aug 2009 02:24:07 GMT konane This is really well explained and worth your time reading the whole article.

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The Lie Of High Frequency Trading Liquidity

..........Let's postulate two HFT computers passing 1,000 share orders for the mythical Frobozz (FBOZ) back and forth between each other. There's a scadload of volume generated by these transactions, and an outside observer, who is unaware that the 1 million shares are in fact 1,000 transactions of the same 1,000 shares being passed back and forth between the same two guys, might assume that there's a lot of liquidity that has been added.

But this is in fact misleading, as the following example will demonstrate. .....

http://market-ticker.org/archives/1366-The-Lie-Of-High-Frequency-Trading-Liquidity.html

... [ More ]

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