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ELI5: Why is high frequency trading allowed?
(lemmy.ca)
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Maybe we could charge a minor fee per transaction, too small to matter for most stock traders. High frequency traders though would have to pay quite a lot simply by making lots of transactions.
They pondered some ridiculously low fee, like 0.0000002% (no kidding) and it was too much here in the EU.
The investment bank already does that and calls it commission. It's basically how the Wolf of Wall Street's main character got started: commission on penny stocks.