
077: Dennis Dick – How to be a Profitable Short-Term Trader in a High Frequency World
Chat With Traders
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The Risk of Adverse Selection in High Frequency Trading
In 1999, it took a few seconds for the S&P 500 components to drop 1%. Now high frequency traders are re-pricing that in milliseconds. That's why speed is so important to high frequency traders because they're trying to beat the other high frequency traders. So basically, I was just playing the arbitrage of the S & P components versus the actual trade tradable futures contract.
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