Bitcoin Forum

Just read this link about coinfloor, a new london exchange allowing high frequency trading.

http://finance.yahoo.com/news/london-bitcoin-exchange-opens-business-145000999.html

Wondered what people make of this? Could High Frequency Trading be a tool allowing big interests to push the price around or supress the price?

It maybe worth reading the following link related to coinfloor.

https://bitcointalk.org/index.php?topic=319741.msg3435075#msg3435075

They couldn't manipulate the price if people stopped selling en masse.

Is there enough volume for HFT?

They can't directly manipulate the price, but they can try and trick people into manipulating the price for them.

So long as you don't lose your pants when you see weird volume & price action, and don't buy or sell irrationally, High Frequency Trading just turns into a gigantic out-botting competition like the NYSE does around the russell roll.

I'm going to go out on a limb and say most exchanges don't have the volume nor the bandwidth to support true HFT. It will eventually happen though.

I've never seen a problem with HFT as long as everyone has access to do it.

Granted, if you don't have the ability to put it together I don't think that means you don't have access to it. If you have the skills no one should stop you if it exists as part of a system

Ask yourself if people so HFT on commodities. Like Gold. Platinum. Copper.

Now ask yourself if one does it on something with a market cap and volatile of BTC.