HFT ASSIGNMENT

Is the U.S. Stock Market Rigged?  http://www.cbsnews.com/news/is-the-us-stock-market-rigged/

https://www.youtube.com/watch?v=ibQmtYrTEDQ

Please watch the video found on the link above and answer the following questions. The episode is about a book by Michael Lewis titled “Flash Boys”.  This is a 60 Minutes episode, but the video actually lasts about 15 minutes with an advertisement.

1.) What are High Frequency Traders (HFTs)?

2.) How does program (or algorithmic) trading differ from conventional trading?

3.) If HFTs only make pennies per trade, then how is their trading strategy profitable?

3.) Some people are advocates of High Frequency Trading,
while others such as Michael Lewis argue against HFTs.

a.) What is wrong with High Frequency Trading?  (e.g. Front-Running)

b.) What argument might advocates of HFT make? (i.e. Liquidity)

c.) What do you think and how might HFTs affect you?

Is the U.S. Stock Market Rigged?  http://www.cbsnews.com/news/is-the-us-stock-market-rigged/

https://www.youtube.com/watch?v=ibQmtYrTEDQ

Please watch the video found on the link above and answer the following questions. The episode is about a book by Michael Lewis titled “Flash Boys”.  This is a 60 Minutes episode, but the video actually lasts about 15 minutes with an advertisement.

1.) What are High Frequency Traders (HFTs)?

2.) How does program (or algorithmic) trading differ from conventional trading?

3.) If HFTs only make pennies per trade, then how is their trading strategy profitable?

3.) Some people are advocates of High Frequency Trading,
while others such as Michael Lewis argue against HFTs.

a.) What is wrong with High Frequency Trading?  (e.g. Front-Running)

b.) What argument might advocates of HFT make? (i.e. Liquidity)

c.) What do you think and how might HFTs affect you?