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High-Speed Trading, HFT, Efficiency, Cheating

HFT: Which is it--efficiency or cheating?

High-Speed Trading Isn't About Efficiency—It's About Cheating - Matthew O'Brien - The Atlantic" . . . high-frequency trading (HFT) hedge funds. These funds use computer algorithms—a.k.a.: algobots—to buy and sell stocks at incredible speeds. We're talking milliseconds. The idea is to react to any market news or inefficiencies before actual humans can process them. And it's any idea that has taken over stock trading: algobots make up about half of all stock transactions in 2012 (which is actually down from its peak of 61 percent). . . ."

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