Quote from: monsterer on January 25, 2016, 11:47:16 AM

Quote from: Fuserleer on January 25, 2016, 11:39:16 AM

Confusion of context, I was referring to a high volume of transactions, not value, which I guess is the same as high frequency.

High frequency trading requires very, very fast response times; that's the key part. It doesn't necessarily follow that trades are submitted at a high frequency in HFT.

That's what I said up thread, its not possible to get that fast enough in a decentralized system.

Quote from: monsterer on January 25, 2016, 11:47:16 AM

Quote from: Fuserleer on January 25, 2016, 11:39:16 AM

Confusion of context, I was referring to a high volume of transactions, not value, which I guess is the same as high frequency.

It doesn't necessarily follow that trades are submitted at a high frequency in HFT.

That's not entirely true IMO.

If the frequency of submitted trades are low, then the likelihood of a conflicting trade being presented at the same time is also low, so the millisecond settle time is not as important with regard to conflicts.

Even if you are referring to the issuance of high frequency trades that want to take advantage of the minute price movements that happen over the course of a second, then without the absolute volume of trades overall these tiny differences in price over the course of a second won't occur either, as there aren't enough traders making multiple trades per second on that resource anyway to effect the price enough for anyone to take advantage of. Thus the millisecond settle time again is mitigated.

If the frequency of trades are low, then any trades you make in the above manner are just trading on the last buy/sell, which is likely yourself.

I don't suppose it matters much to argue about it though, as its not possible in a decentralized, or even semi-decentralized system to get anywhere near these millisecond settlement times.