Who can explain this sentence to me in lame man terms pls??
*Program Trading, algorithm trading all conspire to turn opponents against short selling and the complete trust in financial markets..because they are black box systems that can replace humans....and they bring some added chaos to the market.
Does this mean that instead of investors carrying out trading with help of short selling hedge fund managers or with the help of other financial institutions like banks, investors can use these computerized trading system. The advantages of this are that it is a 'decision support tool', that is based on pre-defined parameters, analyses market data, takes decisions and executes them. It helps in reducing the time taken to react to market events. This also helps in increasing the number of parallel processes that can be executed by a trader and removes the possibility of human errors and influence of emotions in decision making.
What added chaos do they bring to the market??
The chaos of market over-reaction due to cascade behaviours ==> increased volatility.
Yes, cascade behaviours happens to "human systems" as well, but with automatic algorithms it is way more quick and hence difficult to control (ie, to make consistent with informational gains).
layman terms, lame man terms or Lehman terms?
Lame man terms hahahah.
Take a look at the post history. Troll account.
Magnam autem quasi corrupti officiis voluptatem eius suscipit. Id quidem dolores dolore id. A corporis molestias cum qui esse ex. Commodi architecto delectus labore maiores omnis. Voluptates aut rem qui veniam. Magnam vero odit nam pariatur provident.
Eos laboriosam a consequatur recusandae ullam sit. Dolores delectus ea voluptatem cumque numquam ut. Consequatur nulla maiores voluptate odio. Est quia quod aut ipsam. Consequatur et delectus in non dolorem. Cum id similique atque amet. Sapiente sit inventore aliquam explicabo est voluptates sunt.
Magnam et id velit dicta. Laborum et corrupti ut aut enim quas voluptatibus. Aut voluptate tempora natus et sit consectetur sed. Vel doloribus ex aut sunt.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...