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Didn't HFT compete itself out of outsized profitability years ago? So now we get instant super liquidity for pennies?

For stocks most likely, though I assume a lot of it today comes from options traders, where the spread is much wider.

> Didn't HFT compete itself out of outsized profitability years ago?

No

> So now we get instant super liquidity for pennies?

Not pennies yet. Still dime and quarter range.

Last I checked, the spread on SPY is on the order of <1 basis point.