HFT market making is about being more informed about the true price at the micro structure level than your counter-party. Simple as that, no black magic.
If someone trades with a HFT market maker its because
a) they are un-informed about the current true price
b) they choose to optimize execution time over best price
Its the same market game that`s been played for decades, just with different players and tools.
Comments
HFT market making is about being more informed about the true price at the micro structure level than your counter-party. Simple as that, no black magic.
If someone trades with a HFT market maker its because
a) they are un-informed about the current true price
b) they choose to optimize execution time over best price
Its the same market game that`s been played for decades, just with different players and tools.