Monday, 13 August 2012

Dark pools and high-frequency drone wars

Interesting comments and explanations on high-frequency trading on Capital Account where it is suggested that maybe more than 90% of all stock market trades are high-frequency trades. Pay close attention as well to the comment about it perhaps adding liquidity when markets are relatively stable, but draining it when shares prices drop.

The lesson to take home is that the above could contribute to another flash crash or make a potential market down turn worse than it would otherwise be.

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