HFT / Algo trading introduction explanation video

For those unfamiliar with HFT / Algo trading this is a good, basic introduction, in the form of a video of a speech from Yan Ohayon at a TED function. It covers the speed of HFT, milliseconds down to microseconds, latency, colocation (I think it should be spelt co-location?), quote stuffing, and more.

Found originally at The Big Picture blog, here: http://www.ritholtz.com/blog/2011/04/the-impact-of-algorithmic-trading/

Also on YouTube, here: http://www.youtube.com/watch?v=4dEzNMx94s0

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One Response to HFT / Algo trading introduction explanation video

  1. Sam says:

    Wow, three quarters of the market volume is machines…….how can anyone be supportive of this? So, basically the trader(human) will be wiped out, there won’t be any left, and it will be machines fighting it out for the “value” of our companies?

    What are your thoughts on this? Do you support HFT/Algos? It’s a little scary I think, when you think that machines have this much power, surely it would be better if humans were in charge, back when trading was real trading, everything about the “herd mentality” and so forth would all have to be worthless now wouldn’t it? Because there is no “herd”? The opinions of others(what used to “Make the market”) would no longer exist if things keep going like this?

    Interesting/worrying discussion, cheers for the video!

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