Ask A Banker: What's The Deal With High Frequency Trading?
Wall Street Trading Error? by Mike Licht, NotionsCapital.com
License (according to Flickr): Attribution License
License (according to Flickr): Attribution License
Hi! I'm back. I was once a banker and now I write for Dealbreaker and answer your questions about the financial world here. You can send questions to planetmoney@npr. org with "ask a banker" in the subject line, or ask on Twitter (@planetmoney). We've talked before about using financial tools to game the world a bit, and this week's question is in a related line: Q. Do you think high frequency trading is truly helpful for an efficient market? Oh, I don't know. Let's start way way way way way back. Why is there trading? Start with this: If you're a company, you sell stocks or bonds because you want money to do something.
People:
J.M. Keynes
Overall Sentiment: 0.724142
Relevance: 0.241906
Disambiguation: Politician | PhilosopherReferences:
Nassim Taleb
Overall Sentiment: 0.492013
Relevance: 0.234655
| Sentiment | Quote |
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| 0.165362 | my favorite financial writer, Nassim Taleb, says "that if there is a possible spot in time and space capable of bringing a profit, then the areas surrounding it need to account for that effect." |
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Thomas Philippon
Overall Sentiment: 0.172649
Relevance: 0.223792
Key:
- Aggregate Sentiment is meant to be an indicator of an individual's overall sentiment.
- The Mean is meant to be an indicator of an individual's average comment sentiment.
- The Standard Deviation, when there are enough quotes, will indicate an individual's consistency of sentiment (i.e. a Standard Deviation of 0 would mean they were very consistent in their sentiment and 1 would mean they were very inconsistent).
Note that quote stats are likely to be meaningless beyond the aggregate score due to the tiny sample size. However, they are always provided just in case you find something useful there.
Additional Info:
Company: Facebook
Overall Sentiment: -0.0328631
Relevance: 0.873359
Disambiguation: Website | VentureFundedCompanyReferences:
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Source Site: npr.org
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More and more stocks are traded by computers, at speeds so fast humans can't keep up. The problems this creates are largely the problems created by all trading, just speeded up.
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Ask A Banker: What's The Deal With High Frequency Trading?
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