High-speed trading, the computerized automatic stock sales and purchases that are the hallmark of many high-tech firms, seemed like the hottest thing in the world a few years ago, before the market crash of 2008-2009. But even though the stock market has recovered, the sky-high profits enjoyed by these firms seems to be a thing of the past. According to the New York Times, profits from high-speed trading are down 35 percent from last year, and down a staggering 74 percent from their peak in 2009.
These high-speed traders accounted for more than 61 percent of all stocks bought and sold in 2009. But now that number is down to 51 percent and falling fast, which is probably just as well for long-term investors.
One area in which high-speed trading is still growing strong is currency trading. As recently as 2010, high-speed trading accounted for just 12 percent of all currency trades, but that figure has more than doubled, going up to 28 percent now.
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