Comment by bdelmas
6 months ago
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.
What? THAT CASH comes from owning the inside spread on roughly half of every US equity share that trades. They quote a micro-price adjustment, and it pushes out anyone slower - which exactly the “service” that lets retail investors, like us, hit a bid or ask.
Honestly, whether YOU want to call that trend-following or market-making - I can't be arsed, but it’s still data-retrieval that runs THE institutional scale
The ghost of Charlie Munger has entered the chat.
Get to my original reply to you with all the sources first :) then Charlie can join in the fun!
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