defacto standard for professional traders and finance
What do professional traders do nowadays? My impression was it is already bots talking to bots and/or index funds outperforming/on par with actively managed funds.
What do professional traders do nowadays? My impression was it is already bots talking to bots and/or index funds outperforming/on par with actively managed funds.
Very untrue for the vast amounts that aren't -- ten thousands of different corporate and government bonds, thousands of leveraged loans, more fancy securities like convertible bonds, credit default swaps or contingent-convertible bank bonds get traded over Bloomberg chatrooms (think Whatsapp groups with lots of additional features but lots of regulatory red tape).
In these markets passive funds underperform active funds by vastly more than the fee differential - and that is not coincidental.
2) Human traders will generally trade products that aren't automated or will trade products that are automated in sizes that aren't automated. They will also oversee the automated trading.