> high frequency traders are probably making a bundle.
I've heard from a former colleague at a major HFT firm, that they hit their entire revenue target for the year, just in the past week.
I've heard from a former colleague at a major HFT firm, that they hit their entire revenue target for the year, just in the past week.
Robin Hood, by stealing from the rich and giving to the poor (in a period with commodity currency with no monetary policy), would be encouraging deal-flow (as the rich traders stolen from need to send the same goods again to fulfill their contracts; and the poor now have money to spend to purchase exotic goods, requiring more be imported by traders), in turn increasing travel on the toll-road/through the customs office, in turn making the toll-road operator/customs officer money. It would make perfect sense for the mythical Robin Hood to, in fact, be a toll-road operator/customs officer — or at least to be in cahoots with them.
(In fact, come to think of it, he wouldn't even need to steal from the rich, per se. He could just destroy trade caravans, and collect a cut of the revenue from the toll-booth operators; or destroy goods already imported but not yet sold, and collect a cut from the customs office; and then distribute said cut to the poor. The same virtuous(?) cycle would occur.)
1) they are lying to you. Look at how much the stock has traded, Its alot but its nothing compared to how much SPY trades in a year. There just wasn't' anywhere near enough trading volume to make an entire year in one week even if they participated in every trade that Gamestop had this past week.
2) they lost money last year so any profit beats last year's pnl?
I’m in the industry. I stand by what I said:)
You said something that was flagrantly wrong, I’m just trying to help correct you.
Average PnL per share traded for a firm doing okay is about $0.001. A decent size firm might do 4% of ADV. Tape A trades about 1.5 billion shares per day. That’s 21 million annual trading revenue.
GME traded 1 billion shares in the past week. PnL per share has been averaging close to $0.40. At 6% ADV (HFT market share spikes during volatile periods), that’s 24 million in revenue.
I can tell you're in the industry because you say pnl instead of p&l haha.
They don't need much capital, and I'd say that many have no outside investors. So, their trading PnL minus cost of running the operation is the net profit.
On the other hand, the trading PnL will typically be a tiny part of their total trading volume (maybe a few bp).