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What Do High Frequency Traders Look Like?

“So who are these high-frequency traders that some call nefarious and others consider them to be the next market makers? It seems to depend on who you ask.

In a recent white paper, JonesTrading said high-frequency traders are, “akin to market jackals, scavenging off the legitimate strategies of longer term investors while simultaneously touting their importance to market health.”

Some have argued though that without high-frequency traders, who again make up about 70% of the trading, the market would be vastly different.”

70%?? Yes, different, indeed.  I guess, you could make the argument they are like the sellers who short stocks to keep the market in check…maybe?

Interesting stuff, for sure, from Alexandra Zendrian at Forbes.  The  article is here. Follow her here.  Read her here.


5 Responses

  1. I was thinking they look like Google data centers in Wyoming, not people. I don’t think any of the people mentioned work at a place which employs this, right? Or did I miss something?

    I’m glad this is in the news…seventy percent is HUGE.

  2. I was thinking maybe if this guy had a son…

    Seriously, though–WHO are they? Is high frequency totally automated?

  3. High Frequency makes up 70% of the trading??

    So, to what extent are high frequency traders making active trades–or are they just reacting (counteracting?) to other market activity? What happens when they react to other high frequency trades?

  4. I’m sorry, I read 70% and my brain exploded.

  5. The traders actually saw that coming about .00001 of a second prior to it happening, shorted your brain, and triumphed upon explosion.

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