High Frequency Trading: The Frequency Effect

The video explores the impact of high frequency trading on stock exchanges, highlighting the risks of flash crashes caused by complex algorithms. It explains how recursion loops in trading bots can lead to market instability and discusses the importance of market confidence. The video also covers regulatory measures taken to mitigate these risks and emphasizes the challenges in maintaining a secure trading environment.

How do flash crashes impact investor confidence in the market?

What measures have exchanges taken in response to the issues raised by high frequency trading?