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Re: High frequency trading and a 4ms faster cable

From Dag-Erling Smørgrav <des@des.no>
Newsgroups comp.misc
Subject Re: High frequency trading and a 4ms faster cable
Date 2014-04-06 22:21 +0200
Message-ID <86a9byqke9.fsf@nine.des.no> (permalink)
References <lhs9e8$bd$1@solani.org> <lhsarc$gs3$1@dont-email.me>

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Randy Westlund <Vorzakir@invalid.invalid> writes:
> HFT scares me.  [...]  There are flash crashes that happen from time
> to time, and we don't know why.  Maybe someone's algorithm trying to
> create a trend?  Maybe just a race condition inherent in the
> interactions of the algorithms?

You can see the same thing happening on a smaller scale on amazon.com.
Some second-hand booksellers use bots that monitor their competitors and
set their own prices (on the same book) just a little bit higher.  The
idea is to stay competitive while avoiding a race to the bottom.  Once
in a while, two of these bots cross paths and some obscure genre
paperback ends up with a price tag of thousands of dollars or more.

DES
-- 
Dag-Erling Smørgrav - des@des.no

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Thread

High frequency trading and a 4ms faster cable RS Wood <rsw@therandymon.com> - 2014-04-06 19:20 +0000
  Re: High frequency trading and a 4ms faster cable Randy Westlund <Vorzakir@invalid.invalid> - 2014-04-06 19:44 +0000
    Re: High frequency trading and a 4ms faster cable Dag-Erling Smørgrav <des@des.no> - 2014-04-06 22:21 +0200
      Re: High frequency trading and a 4ms faster cable Randy Westlund <Vorzakir@invalid.invalid> - 2014-04-07 01:11 +0000
    Re: High frequency trading and a 4ms faster cable Hils <hils@saynotospam.net> - 2014-04-06 21:23 +0100
      Re: High frequency trading and a 4ms faster cable Randy Westlund <Vorzakir@invalid.invalid> - 2014-04-07 01:05 +0000
        Re: High frequency trading and a 4ms faster cable Dave Garland <dave.garland@wizinfo.com> - 2014-04-08 15:36 -0500
          Re: High frequency trading and a 4ms faster cable Randy Westlund <Vorzakir@invalid.invalid> - 2014-04-09 05:51 +0000
            Re: High frequency trading and a 4ms faster cable Dave Garland <dave.garland@wizinfo.com> - 2014-04-09 16:24 -0500
              Re: High frequency trading and a 4ms faster cable Randy Westlund <Vorzakir@invalid.invalid> - 2014-04-10 17:40 +0000
    Re: High frequency trading and a 4ms faster cable Hils <hils@saynotospam.net> - 2014-04-06 21:39 +0100
    Re: High frequency trading and a 4ms faster cable Hils <hils@saynotospam.net> - 2014-04-06 21:39 +0100
      Re: High frequency trading and a 4ms faster cable RS Wood <rsw@therandymon.com> - 2014-04-07 08:57 +0000

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