He does not see "Vanguard" - the trade confirmation is anonymous. It could even be him! (Yes, you are subscribed to a multicast trade confirmation feed and even your own trade confirmations are anonymized.) He does not see Vanguard's physical location - for all he knows Vanguard is closer than he is.
So actually, all the HFT knows is that someone bought some AAPL.
Now what? Whenever someone buys AAPL he goes out and buys a bunch more? That doesn't sound like a moneymaking strategy to me.
What evidence do you have that people are making millions of dollars from this as you write this? Michael Lewis?
TRADE AAPL 1000@$96.98.
He does not see "Vanguard" - the trade confirmation is anonymous. It could even be him! (Yes, you are subscribed to a multicast trade confirmation feed and even your own trade confirmations are anonymized.) He does not see Vanguard's physical location - for all he knows Vanguard is closer than he is.
So actually, all the HFT knows is that someone bought some AAPL.
Now what? Whenever someone buys AAPL he goes out and buys a bunch more? That doesn't sound like a moneymaking strategy to me.
What evidence do you have that people are making millions of dollars from this as you write this? Michael Lewis?