HFT is basically just computerised market making. Market making increases liquidity and reduces spread, which is fantastic for small investors.
HFT is the reason I can personally put in an order and have it executed within 10 seconds without the price moving much. I've traded on markets with little to no liquidity, it sucks. You wait half a day for your order to fill only to have the price significantly move against you...
>> "HFT is basically just computerised market making."
Except that they are not real-deal market makers, haven't signed those contracts with the exchange, etc. Which means when times are tough, HFT's and their liquidity will vanish very quickly. And that's exactly when we need them.
HFT is the reason I can personally put in an order and have it executed within 10 seconds without the price moving much. I've traded on markets with little to no liquidity, it sucks. You wait half a day for your order to fill only to have the price significantly move against you...