high frequency trading

Algorithms Gone Wild: 3 Cases of Computers We Trusted Too Much

Computer programs can sometimes be better at spotting trends or dealing with consumers' intricate demands than human employees. But what happens when an algorithm fails? Putting too much authority into the virtual hands of a program can -- and has -- led to some epic fails.

Flash Crash Panel to Discuss Reforms with SEC, CFTC

The May 6 "flash crash" is still somewhat of an enigma, but an advisory panel meeting on Friday to review a report into it could at least help regulators establish some new market rules to prevent similar crashes from occurring in the future, Reuters reports.

Investors, Here's What Not to Buy: The Pundits' Advice

Investing is a jungle, and most of the so-called experts who get quoted in the media are on the prowl with a simple purpose -- to give you a reason to trade. But they don't know much more than you do, and all their arguments ignore a basic reality: The market is now controlled by short-term traders.

How the Media and Wall Street Create Fake Stock Gurus

The financial media loves to pluck struggling analysts from obscurity and propel them to fame on the backs of a few good calls, then shoot them full of arrows at them when their predictions start to fail. And inevitably, those so-called gurus will fail. Here's why.

Latency Arbitrage Skims $3 Billion Off Retail Investors

For retail investors hoping to build retirement savings or fund kids' education, latency arbitrage skims off some $3 billion a year from their gains. Find out how the practice allows big hedge funds to profit -- without risk -- from a rigged market.

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An arms race has begun in the secretive world of high frequency trading, the practice of making a high number of trades netting small gains that can...