Stock traders with faster computers are at an advantage, and can manipulate the stock market.
http://www.nytimes.com/2009/07/24/business/24trading.html "The slower traders began issuing buy orders. But rather than being shown to all potential sellers at the same time, some of those orders were most likely routed to a collection of high-frequency traders for just 30 milliseconds 0.03 seconds in what are known as flash orders. While markets are supposed to ensure transparency by showing orders to everyone simultaneously, a loophole in regulations allows marketplaces like Nasdaq to show traders some orders ahead of everyone else in exchange for a fee. "In less than half a second, high-frequency traders gained a valuable insight: the hunger for Broadcom was growing. Their computers began buying up Broadcom shares and then reselling them to the slower investors at higher prices. The overall price of Broadcom began to rise. "Soon, thousands of orders began flooding the markets as high-frequency software went into high gear. Automatic programs began issuing and canceling tiny orders within milliseconds to determine how much the slower traders were willing to pay." I've often said that the stock market was a casino. I was wrong. Casinos take great care that people with faster computers can't manipulate them ... ====================== (quote inserted randomly by Pegasus Mailer) [email protected] [email protected] [email protected] Given the estimated mass and Schwarzschild radius of the known universe, we inhabit a black hole. This would explain a lot about user behaviour. - rms http://victoria.tc.ca/techrev/rms.htm http://blog.isc2.org/isc2_blog/slade/index.html http://twitter.com/rslade http://blogs.securiteam.com/index.php/archives/author/p1/ http://twitter.com/NoticeBored _______________________________________________ Fun and Misc security discussion for OT posts. https://linuxbox.org/cgi-bin/mailman/listinfo/funsec Note: funsec is a public and open mailing list.
