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omellet

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It's a way to fraudulently pump the price (or lower the price) of a security. One person with two accounts can keep trading back and forth with themselves, and since crypto exchange know-your-customer measures are trivial or nonexistent, it's very easy to get away with.

It is a huge premium. In reality it should only be the future value of the current spot, given the current interest rate. For other types of futures (oil, grains) that have storage costs or seasonality there are other factors that affect the difference between the spot and future price, but for financial futures (especially cash-settled) it should be nearly no difference for a one-month expiry.

The problem isn't locking so much, it's that you have to dispatch to a kernel thread when you're requesting and sending data, paying the cost of that context switch every time. In userspace you can spin a polling thread on its own core and DMA data up and down to the hardware all day long without yielding your thread to another one.

It's not an especially high barrier if your strategy doesn't require you to build physical infrastructure (most strategies don't require this). You have programmers, hardware, colocation costs, direct exchange connection costs, trading fees, etc. The programmers are by far the most expensive component.

For any amount of time less than it would take a human being to make a decision and take action, it doesn't really matter the latency. Even if the website and newsfeed release were guaranteed simultaneous, the mom & pop investor typically doesn't have a computerized trading strategy, let alone one running in a colocation facility with a single switch hop between them and the exchanges.

From Vim to Emacs 12 years ago

Can't you do the same thing with vimscript (or python, if you're using +python builds)?