HFT is gambling, pure and simple. I bet the price is going up, someone else bets that it isn't. Personally, I don't have a problem with gambling and I don't care if other people do it. It certainly sounds sketchy, given that they are using millions of dollars of other people's money. But they know the risks and they do a decent job of managing them. This is no harm, no foul.
I think part of the point (maybe Cuban's point) is that gambling isn't helping anyone, either. Financial markets were designed in theory to get capital to the right companies. HFT is a lot like a Native American casino...there was something much more profitable to do with the real estate than it's intended use.
I think part of the point (maybe Cuban's point) is that gambling isn't helping anyone, either. Financial markets were designed in theory to get capital to the right companies. HFT is a lot like a Native American casino...there was something much more profitable to do with the real estate than it's intended use.