High-Speed Trading Isn’t About Efficiency—It’s About Cheating

When hedge funds use bots to buy and sell stocks within milliseconds, they’re not improving the market. They’re rigging the market.

 

High-frequency trading (HFT) hedge funds. These funds use computer algorithms—a.k.a.: algobots—to buy and sell stocks at incredible speeds. We’re talking milliseconds. The idea is to react to any market news or inefficiencies before actual humans can process them.

http://www.theatlantic.com/

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