Those
 who defend high frequency trading say such trading improves market 
liquidity, It assures a buyer or seller availability whenever one wants 
to trade
High
 frequency trading benefits mutual fund investors and traders in that it
 reduces costs. It lets investors with fast computers take advantage of 
small price discrepancies and brings market liquidity.
.
In
 the past, the stock market was efficiently operated by middle men or 
“market-makers.” They normally completed sales by buying and selling in 
their own accounts, if they could not immediately match buyers and 
sellers. Market makers profited on the difference between the bid prices
 buyers were willing to pay and the ask prices sellers accepted.
The
 SEC is tightening its controls of high frequency trading which it’s 
currently suspicious of, and further studies the matter.(See the 
Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)


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