Supply and Demand Equilibrium Overruns a Picket

Let’s step back for a moment from the debate about high frequency trading (“HFT”) and  consider some basic economics and trading strategies. Every economics class I have ever taken has always used a supply/demand chart to reflect a quantity willing to be supplied and demanded at every possible price, with the crossover point representing the current market equilibrium. What is this “market equilibrium?” This equilibrium is a state in which supply and demand are balanced, or …