HFT people say the book is inaccurate. See: https://www.amazon.com/dp/B00P0QI2M2/ref=dp-kindle-redirect?_encoding=UTF8&btkr=1
(The Amazon description of that book is enough to give you a sense of people's objections, and then you can Google around for more if you're interested.)
I think one issue was that Lewis didn't actually speak to or cite any high-frequency traders in the book, and in fact some of the schemes he describes are no longer (or never were) feasible or possible. Actually there was an entire book written in response:
https://www.amazon.com/Flash-Boys-Insiders-Perspective-High-Frequency-ebook/dp/B00P0QI2M2/
I don't trade on that scale but from what I understand the whole "the market is rigged" theme did a disservice to HFTs by ignoring their positive contributions to price discovery and market liquidity. Arbitrage does not equate to nefarious activity. Again any details I try to elaborate on here could probably be shot with holes by a real HFT trader!
You should read all of the Flash Boys rebuttals that came out afterwards.
A Much-Needed HFT Primer for 'Flash Boys' Author Michael Lewis
A Fervent Defense of Front-running HFTs
Michael Lewis’ Repeat Omission: No Crimes Were Committed
Michael Lewis: shilling for the buyside
Flash Boys - Misleading information
Or the book written directly in response: Flash Boys: Not So Fast
I'm so tired of posting this comment.
OP, you should read all of the Flash Boys rebuttals that came out afterwards.
A Much-Needed HFT Primer for 'Flash Boys' Author Michael Lewis
A Fervent Defense of Front-running HFTs
Michael Lewis’ Repeat Omission: No Crimes Were Committed
Michael Lewis: shilling for the buyside
Flash Boys - Misleading information
Or the book written directly in response: Flash Boys: Not So Fast
You should read all of the Flash Boys rebuttals that came out afterwards.
A Much-Needed HFT Primer for 'Flash Boys' Author Michael Lewis
A Fervent Defense of Front-running HFTs
Michael Lewis’ Repeat Omission: No Crimes Were Committed
Michael Lewis: shilling for the buyside
Flash Boys - Misleading information
Or the book written directly in response: Flash Boys: Not So Fast
> Read "Flash Boys" it gives a accurate description.
No, it doesn't.
You should read all of the Flash Boys rebuttals that came out afterwards.
A Much-Needed HFT Primer for 'Flash Boys' Author Michael Lewis
A Fervent Defense of Front-running HFTs
Michael Lewis’ Repeat Omission: No Crimes Were Committed
Michael Lewis: shilling for the buyside
Flash Boys - Misleading information
Or the book written directly in response: Flash Boys: Not So Fast
Ah yes. Flash Boys. That book is awful and basically gets everything wrong. This book is a point by point rebuttal about everything wrong with Flash Boys. It's quite good:
https://www.amazon.com/Flash-Boys-Insiders-Perspective-High-Frequency-ebook/dp/B00P0QI2M2#navbar
If you're interested in this sort of thing I can't recommend it highly enough. It's an easy read and it will definitely change your perspective on things.
As for your specific example. Imagine you had a gas station. You're selling gas for 2.49 just like the station across the street. But then you see a giant tanker pull up and buy every gallon of gas the guy across the street is selling. Do you keep your price at 2.49 or do you think to yourself "Huh. Looks like demand for gas is increasing. Time to raise prices!"
There is nothing wrong with prices rising in response to increasing demand. That's what is supposed to happen in a functioning market.