High Frequency Trading (Hfts): Dark Pools

High Frequency Trading (Hfts): Dark Pools

Assessment

Interactive Video

Business

7th - 12th Grade

Hard

Created by

Quizizz Content

FREE Resource

The video tutorial explains the concept of dark pools in trading, focusing on platforms like Robin Hood that operate within their own ecosystems. It highlights how these platforms allow high frequency trading firms to engage in practices like front running, which can destabilize markets. The tutorial also discusses the business model of such platforms, emphasizing that users may unknowingly become the product. Finally, it raises concerns about the impact of high frequency trading on market stability and the need for regulation to catch up with technological advancements.

Read more

2 questions

Show all answers

1.

OPEN ENDED QUESTION

3 mins • 1 pt

Why might users of Robin Hood be considered 'the product'?

Evaluate responses using AI:

OFF

2.

OPEN ENDED QUESTION

3 mins • 1 pt

What challenges do regulators face in relation to high frequency trading?

Evaluate responses using AI:

OFF