Ars Technica gives us a look into the world of "High Frequency Trading" (HFT), a lightspeed quick automated style of stock-market trading that uses semiautonomous systems to buy and sell assets in a fraction of a second, for a fraction of a cent more than they paid, a billion times, and make real money:
Some categories of "predatory algos" closely monitor the markets in order to sniff out exactly these types of hidden large orders, so that the algo can trade against them. For instance, if a predatory algo detects that someone is trying to hide a large sell order for INTC by trickling it out into the market in small blocks, it might work to bid down the price of INTC just a bit so that it can pick up those blocks at a discount and then sell them for a profit when the share price floats back up to the market's earlier, non-manipulated valuation...
The Matrix, but with money: the world of high-speed trading
The final animal in the HFT menagerie that I'll point out on this brief tour is the automated market maker (AMM), which is a subtype of what is often called "dark pools," or "dark liquidity." AMMs like Citadel always stand ready to buy and sell large quantities of assets, and they don't publish price quotes to other market participants via exchanges.
To find out what assets a dark pool will either sell or buy and at what price, you first have to ping it. Once you ping the pool with a request to, say, buy a specific asset, the pool will reply with the price that it's willing to sell you that asset for. You can either accept the price and complete the transaction, or turn it down and ping again later to see if the price has moved in your direction.
I’m at Institute for the Future in Palo Alto, CA today (I’m on staff) at the Positive Platform Design Jam, where we had Cornell historian Louis Hyman give a presentation called “Unnatural Capitalism: How the New Deal Reinvented Capitalism and Why We Need to Do It Again.” You can watch a video recording of his […]
UC Irvine economist Peter Navarro, a hand-picked Trump economic advisor: “Navarro has never met Trump in person. And as for speaking with him by phone, he acknowledges, ‘I have never had the pleasure.'”
California governor Jerry Brown today approved a mandatory minimum wage of $15 an hour by 2022. The bill’s enactment came within hours of a similar bill signing in New York by governor Andrew Cuomo.
Holiday shopping is in full swing, and the Striiv Touch is one of the best gift ideas I’ve landed on. Its simple design works for females and males, and its wide range of features makes it suitable for even the non-fitness enthusiasts in your life.Unlike traditional fitness trackers, the Striiv Touch also acts as a smartwatch. It […]
The Pocket Tripod PRO had massive Kickstarter success in 2013, raising almost $85,000 in a single month. But this isn’t just another case of pre-release product hype. This ingenious little device folds out from a credit-card-shaped plastic slab into a sturdy stand with a surprisingly wide range of motion. In portrait orientation, your phone slides […]
Loot Crate is a totally different kind of subscription service that mails subscribers monthly boxes filled with curated geek, pop culture, and gamer paraphernalia. Its cult following awaits a box every month filled with everything from bobble heads to T-shirts to special edition collectibles. But nothing gets Loot Crate fans as excited as the limited […]