Question submitted by Prathvi - 03, Dec 2016

High Frequency Trading

Is it true that high frequency traders prove to be a disadvantage for normal traders due to benefits like co location? if yes how is it affecting the normal traders ?

Harish - answered the above question

  • Harish (14, Dec 2016):
    For a normal manual day trader or a positional trader this shouldn't be an issue other than some occasional spikes . In fact I feel they add liquidity to the market. 
    As your trade latency becomes very low then this might start impacting you, but I don't see a retail guy trying to trade in millisecond frequency. So nothing to worry as of now for Indian market.