Comment by HaZeust
6 months ago
The stock market is the root for the majority of all the world's economic value, and has almost-exclusively been data retrieval since 2001.
6 months ago
The stock market is the root for the majority of all the world's economic value, and has almost-exclusively been data retrieval since 2001.
The stock market is not the root of the value, it's where the value (and plans for generating more) is put to a popularity contest.
Determining value of a thing IS how well it does in a popularity contest. That's all economics is. If your apples are fundamentally less sought after - and popular - than my potatoes, your apples are cheaper than my potatoes.
Come on. The stock market is not just data retrieval. The statement doesn’t even make sense.
It makes perfect sense, and I meant what I said.
60% of all US equity volume is pure high-frequency trading, and ETFs add roughly another 20% that’s literally just bots responding to market activity and bearish-bullish sentiment analysis on public(?) press releases. 2/3 of trading funds also rely on external data to price in decisions, and I think it was around 90% in 2021 use trading algorithms as their determining factor for their high-frequency trade strategies.
At its core, the movements that make up the market really IS data retrieval.
Volume is not value.
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Sure, the market, but HFT is relatively tiny as a market and the profit it brings. Not to mention, it's essentially a zero-sum game.
Brought to you by your favorite Google LLM search result:
"The global high-frequency trading (HFT) market was valued at USD 10.36 billion in 2024 and is projected to reach USD 16.03 billion by 2030"
(unverified by a human, use at your own risk).
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The stock market does not grow potatoes.
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The percentage is irrelevant without knowing how they really work and how much profit they make. They could be at 95% with 0.1% of margin it wouldn’t mean much for the market.
At the end of the day talking about HFT this way is to not know what they do and what service they offer to the market. Overall they are not trending makers but trend followers.
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