Lv 7
asked in Business & FinanceInvesting · 1 month ago

do most people who invest in stocks know that most stock trading is done by computers now? when this became the norm too btw?

stock market is just like a computer operated slot machine? or what is it now? not even based on economics anymore, what is it based on? why not apparent before?

Update:

SORRY , TO CLARIFY, I MEAN MOST STOCK TRADING IS DONE AUTOMATICALLY BY COMPUTERS, VIA ROBOTS

6 Answers

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  • Amy
    Lv 7
    1 month ago

    The high-frequency trading between computers might be a majority of the trades made, but it involves only a small portion of the shares in existence. Most shares are owned for the long term, by institutions such as universities and retirement plans. 

    Those computers are basing their decisions on the same economics as humans would. They're just able to respond a lot faster to changes.

  • Anonymous
    1 month ago

    You're all mixed up and do not understand anything.  How about you spend some time trying to learn before you talk.  But Investing For Dummies at a local book store.  Investors use their home computers to connect to the computers of a discount broker.  The discount broker computers are connected to the computers of all the major stock markets.  We buy and sell stock using money we have already put on deposit with the Broker.  This eliminates using an actual person to do the work and therefore our cost is zero.

  • 1 month ago

    Neither you using this sign on or the other sign-on (Anonymous) are clueless as to how the markets work.

    Trading involves - order entry, executions and clearing.  Computers do not control order entry and/or clearing functionsMost order entries ARE NOT by computers.   Orders are routed for executions by humans or code such orders for defined routing.  However, other than large orders are considered executed by computer designed matches, since the computers are owned & operated by broker/dealers, it is the B/D that makes the executions and as such are responsible for the clearing of such orders

    Source(s): from The Street
  • Judy
    Lv 7
    1 month ago

    "Most are done by" is not accurate, but computers do provide a substantial amount of information to assist in stock purchases and sales.  But those computers are programmed BY HUMANS to consider the same info that people use - the computers can just look at more info much faster than people can.  

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  • Anonymous
    1 month ago

    Investing and trading are two different things. If you invest, you aren't concerned by the trading. 

    Maybe you should re-phrase your question.  

  • Anonymous
    1 month ago

    Oh no they're not. While computers ASSIST in trading. Humans input the buys and sells. Currently, there are no computers that can make those decisions.

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