Three milliseconds doesn’t seem long to most corporate workers. But to high-speed traders, this time can mean the difference between a good and a bad trade.

But to save those sensitive milliseconds, it’ll cost you.

How much? Thomas Philippon, associate professor of finance at New York University, estimates saving three milliseconds for high-frequency traders costs the U.S. $280 billion each year, reports The New York Times.

This is the equivalent to about 2% of the U.S. GDP, notes Philippon.

Read more.

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Originally published on Advisor.ca

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