They get to see, either directly or algorithmically the trades that are coming in to the market.
Jandy variable speed pump.
Are There Systemic Risks That Result From All of This.
Do you run your pump all year round?Everyone in the HFT business wants to get to the front of the line.It is neat to be able to dial your pump into the exact RPM needed and hear the pump ramp up or dial down. There is a moral hazard involved.By knowing this they can avoid.In casino terms, the trader who owns the front of the line is the house. There is a problem in the markets known as" stuffing.In the past people used their speed advantages to trade their own portfolios.We can deal with HFT no problem. While having copies of the algorithms locked up at the SEC wont prevent a market collapse/meltdown, at least we can reverse engineer it if it happens.If you wait hours in line for the newest iPhone then you may be a prime candidate for a variable speed pump as they are pretty cool.Calculate exactly how much your pool pump will cost to operate in your state.They knew they had an advantage with faster information or placing of trades and they used it to buy and own stocks.This is where HFT create"s that are supposed to trick other algorithms, traders, investors into believing their is a true order available to be hit.
It is very hard.
Warm Climates Pump Type Energy Use Per Year Cost to Operate Savings Per Year Average Pay Back Time Single Speed Pump 4714 kWh 613 Dual Speed Pump 2521 kWh Months Variable Speed Pump 948 kWh Months Note: Example above is using National Avg.
When I say good starting hands in texas holdem poker algorithmically, it means that firms are using their speed and their brainpower to take as many data points as they can use to predict what trades will happen next.
Single Speed Pool Pump, highest operational costs, least expensive upfront costs.Variable speed pumps are quiet because the motor is Totally Enclosed Fan Cooled (tefc) meaning that it is much quieter than a single speed or dual speed pump.What matters is what their intent is and how they are used).It is this lack of ability to quantify risks that creates a huge cost for all.Easy to fine tune flow rates. While Im not a fan of the SEC, they do have smart players at their market structure group. We saw what happened with the Flash Crash. We shouldnt have to invest with only the biggest firms to avoid some of the risks of HFT. The smarter players have risen to the top.