Has computing destroyed the integrity of the financial markets?

?

???? ?l????

New member
With all the algorithms and formula's at everyone disposal. For example, the impact of the black scholes formula on options trading?

I know algorithms and formula's were around long before computers but computing took them to a whole new level, in fact, a whole new universe in regards to what could be calculated in a short space of time.

In my opinion computers have removed the sense of intuition from the financial markets, some would say it's actually removed the 'risk' rather than the intuition. What would you say?
 
I guess it all depends on what you mean by 'ruined'. Yes it has taken out a bit of the guesswork involved with financial markets, but there is always a human and unknown that makes the outcome a mystery.


Computers likely just made it easier to process the information once it came to fruition. Algorithms have been formulated to project what we think we know, but in reality it's not certain. Computers can do math basically, they are only intelligent to a certain point.


I think they have also opened up a wide variety of new avenues for investors to explore. Connecting to the rest of the world is infinitely easier as is reading the latest news and market trends.


You may think that computers have taken a lot of the mystery out of the whole thing and this is true to some extend, but I still think there's plenty to be had.
 
Back
Top