HFTs allow investment banker types to “probe” smaller investors for the highest price that they are willing to purchase a stock for and then execute a trade at that price. It's just one more way that the NY Stock Casino rigs the game in favor of the house.
HFTs allow investment banker types to “probe” smaller investors for the highest price that they are willing to purchase a stock for and then execute a trade at that price. If you are not talking about frontrunning, how is this different from other auctions, let's say eBay?
With the spreads now down to the penny, if that's the highest price a "smaller investor" is willing to buy, why is it bad if that's the price that his order fills? Doesn't he have a choice to walk away from the trade as well?