High frequency trading Research Paper Example | Topics and Well Written Essays - 500 words

High frequency trading - Research Paper ExampleAnother disadvantage that faces the average investor is the ability to withdraw and savant thousands of trades at multiple pricing points within the same period. This makes it difficult to understand what is or is not legit (Petajisto 273). Further, the ability of these programs coming up with the upper buy revolve and lower sell range drop create security for one individual and insecurity for the other. It becomes very difficult to have the average investor coming up with a substantial amount because the investors privy with HFT could sell below the limit forcing an individual to pay more compared to normal circumstances. The fact that they attain the information seconds in the beginning allows them to have an edge that disadvantages the investors, exposing them to risks (Aldridge 65 Kirilenko, Kyle, Samadi & Tuzun 25).Many get out look at this from the angle of having more to do with ones trading sessions, but the unleveled conten d field makes it worse. The securities exchange should rein on such behaviors and provide the investors with a fair chance of meeting these ideals.Regulations are necessary in this sector. Investors need to shut up within similar platforms as a way of encouraging them to make better use of the skills present. One thing that can be done is creating stronger controls that will create safety nets around the trading options (Aldridge 67). This will enable the government to provide the stock exchanges with the required platforms that will help reduce the market imbalance through the proper utility of the incentives provided. Markets will also benefit a lot if information was not disseminated before hand, allowing all traders to benefit from what they possess, rather than amaze new platforms that do not define the market as a whole (Petajisto 274). Ideally, the traders will have to get clearing before some of the tools can be used, something the government needs to pay great attention to. By limiting the risks, it is very