Large trades <i>should</i> move the market!<p>You and I buy stocks in small amounts. Intuitively, after each of our trades, we understand that the market moves to take the impact of those trades into account. That&#x27;s the point of markets!<p>So why on earth should it be that a hedge fund should be able to buy or sell huge amounts of stock without having the market move? You don&#x27;t have that power. Why do they? The fact that a giant entity is trying to move huge amounts of stock is <i>information</i>. The point of the market is to capture that information and build it into prices. That&#x27;s exactly what HFTs are doing in this scenario.<p>The expectation that hedge fund managers have that they should be able to capture the spot price of a security and then <i>buy or sell arbitrary amounts at that price</i>, taking their information advantage out of the hides of every other market participant, seems totally unfair. Again: you don&#x27;t have that privilege on the market. Why do they?