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If you step back for a second. You say: " HFT does NOT take anything from most investors most of the time." Yet the HFT people are making tons of money. Where
by rdrdss23 12y ago
If you step back for a second.
You say: " HFT does NOT take anything from most investors most of the time."
Yet the HFT people are making tons of money. Where is it ultimately coming from?
- tptacek 12y agoEasy: other middlemen in the markets; "the finance industry".
- kasey_junk 12y ago"tons of money" is also relative. HFT firms make way less money than the ibanks that act as middle men to most investors and the exchanges. Most of the money in HFT actually comes from those previously more rapacious middlemen's bonus.
- idohft 12y agoThe industry doesn't really make that much money. Estimates for this past year were in the $1-2 billion range. That's not big for the finance sector, or any industry. That being said, it doesn't take that many people to run a shop, so individuals may be paid a lot.
- mmaldacker 12y agoThey don't make tons of money. I think Michael Lewis quotes a annual revenue of 16 billions for all the HFT companies put together. That's less then half of goldman sachs' revenue alone.