High frequency trading: Difference between revisions
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(HFT | (HFT). | ||
Trading activities using sophisticated technological tools and computer algorithms that generate a large number of daily trades at very fast speeds. | |||
Typically at the end of the day there is no open position in the market. | |||
Characteristics attributed to HFT are: | |||
#Extraordinarily high speed using sophisticated computer programs for generating, routing, and executing orders; | |||
#Use of co-location services and individual data feeds offered by exchanges and others to minimize network and other types of time delays; | |||
#Very short time-frames for establishing and liquidating positions; | |||
#The submission of numerous orders that are cancelled shortly after submission; | |||
#Ending the trading day in as flat a position as possible. | |||
==See also == | ==See also == | ||
* [[Algorithmic trading]] | * [[Algorithmic trading]] | ||
* [[Computer based trading]] | * [[Computer based trading]] | ||
* [[Day trading]] | |||
* [[Investment horizon]] | |||
[[Category:Identify_and_assess_risks]] | |||
[[Category:Financial_products_and_markets]] | |||
[[Category:Technology]] | |||
Latest revision as of 14:18, 9 July 2022
(HFT).
Trading activities using sophisticated technological tools and computer algorithms that generate a large number of daily trades at very fast speeds.
Typically at the end of the day there is no open position in the market.
Characteristics attributed to HFT are:
- Extraordinarily high speed using sophisticated computer programs for generating, routing, and executing orders;
- Use of co-location services and individual data feeds offered by exchanges and others to minimize network and other types of time delays;
- Very short time-frames for establishing and liquidating positions;
- The submission of numerous orders that are cancelled shortly after submission;
- Ending the trading day in as flat a position as possible.
