By YahooFinance
High-frequency trading dominance in modern markets
The New York Stock Exchange handles about $20 billion in trades daily, but 70% of all trading is now done by algorithms in milliseconds. These high-frequency trading firms make profits of just fractions of a penny per trade, but execute millions of trades daily, fundamentally changing market dynamics and liquidity provision.
Algorithmic trading market transformation
Modern financial markets are dominated by algorithmic trading, with computers making split-second decisions based on mathematical models. This has increased market efficiency and liquidity while raising concerns about market stability and fairness for individual investors.