Chapter 764: CH759: Champion’s Great Heist II

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CH759: Champion's Great Heist II

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The same but reverse happens to a Buyer Algorithm.

Buyer Algorithms are programmed to look for the lowest deal possible for any particular stock.

Usually, when a Buyer Algorithm puts out a request for a stock, HFTs offer the stock to it at different prices. The Buyer can then choose the lowest price to buy.

However, the withdraw of the HFTs from the markets also disrupts this chain.

As mentioned before, HFTs are programmed to automatically make bids when a request is put in by a buyer or seller. In this case, the HFT would offer a buyer a stock at a high price, usually hundreds of thousands of dollars.

No Buyer Algorithm would normally buy the stock at that price. But the withdrawal of all HFTs from the market would mean all HFTs would quote the same inflated price. Hence, the inflated price of hundreds of thousands of dollars would be the 'lowest' price the Buyer Algorithm can get the stock.