Picture 1 of 1

Stock photo

High Frequency Trading: Economic Necessity or Threat to the Economy? by Stefan H - Picture 1 of 1

High Frequency Trading: Economic Necessity or Threat to the Economy? by Stefan Hoppel (Paperback / softback, 2014)

thenilestore (1243068)

99% positive feedback

Price:

AU $103.18

ApproximatelyPHP 3,760.36

+ $17.10 shipping

Estimated delivery Mon, 23 Jun - Tue, 1 Jul

Returns:

30 days return. Buyer pays for return shipping. If you use an eBay shipping label, it will be deducted from your refund amount.

Condition:

Brand New

About this product

Product Information

In the last four decades, techlogical progress led to an electrification of stock tra-ding systems. It was realized that the profitability of trading strategies could be increased by employing computer algorithms to trade automously. This led to the implementation of High Frequency Trading (HFT). Theoretically HFT should increase efficiency in financial markets but it seems that, at least under certain circumstances, it causes market instability. The aim of this paper is to discuss the effect of HFT on market quality and why HFT cant be fully explained by the neoclassical theory of ecomics. Therefore, the controversial positions in literature will be presented and discussed. It is especially referred to the influence of HFT on liquidity, price discovery and volatility. Primarily, its negative effect on volatility seems to contravene the modern finance. Furthermore, in the course of this work it will be illustrated that, by employing strict regulation of financial markets, this negative impact cant be reduced to a suf-ficient extent in order for HFT to be characterized as market optimizing, accor-ding to the neoclassical theory of ecomics.