High Frequency/Velocity Trading:--This is what it is simplified--When ever you want to buy anything, your neighbor has the ability to know this just before you are about to buy and then purchases all of what you want seconds before you arrive and then offers to sell it to you at a slightly marked up price. It's like everyday is Christmas eve and you have to buy that one remaining item you must purchase as a present but someone beats you to it just by a few seconds and then offers to sell it to you at a higher price.
This is the same thing that happens in High Frequency/Velocity Trading in the stock market. These traders, due to a fractured stock market and their "positioning" in the control of the fastest stock-trade electronic networks can detect what you want to buy, buy it multi-millionths of seconds before you do and then sell it to you at a slightly marked up price. They skim millions of dollars out of the marker every year.
Why should you care?
Because it rigs the stock market against you and your pension managers.
It also creates a class of high rolling moochers who, while shaven, washed, deodorized, well-dressed, brilliant, gallant, alarmingly wealthy and enterprising--they create no value, and are no different then the clever none-needy panhandlers who skim money at freeway off ramps and on ramps from passing motorists. In fact, while what they do is not illegal, unlike the panhandler, it is out of sight and therefore done without our knowledge or consent.
http://www.foxbusiness.com/investing/2014/04/03/schwab-high-frequency-trading-is-growing-cancer-that-must-be-stopped/
Loren M. Lambert © April 4, 2014
This is the same thing that happens in High Frequency/Velocity Trading in the stock market. These traders, due to a fractured stock market and their "positioning" in the control of the fastest stock-trade electronic networks can detect what you want to buy, buy it multi-millionths of seconds before you do and then sell it to you at a slightly marked up price. They skim millions of dollars out of the marker every year.
Why should you care?
Because it rigs the stock market against you and your pension managers.
It also creates a class of high rolling moochers who, while shaven, washed, deodorized, well-dressed, brilliant, gallant, alarmingly wealthy and enterprising--they create no value, and are no different then the clever none-needy panhandlers who skim money at freeway off ramps and on ramps from passing motorists. In fact, while what they do is not illegal, unlike the panhandler, it is out of sight and therefore done without our knowledge or consent.
http://www.foxbusiness.com/investing/2014/04/03/schwab-high-frequency-trading-is-growing-cancer-that-must-be-stopped/
Loren M. Lambert © April 4, 2014
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