Huffpost Business

NYT Op-Ed: Could High-Speed Trading Lead To Another Panic?

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The idea is straightforward: Computers take information -- primarily "real-time" share prices -- and try to predict the next twitch in the stock market. Using an algorithmic formula, the computers can buy and sell stocks within fractions of seconds, with the bank or fund making a tiny profit on the blip of price change of each share.

There's nothing new in using all publicly available information to help you trade; what's novel is the quantity of data available, the lightning speed at which it is analyzed and the short time that positions are held.

Read the whole story at New York Times