High frequency trading: Difference between revisions
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imported>Doug Williamson m (Spacing 27/8/13) |
imported>Doug Williamson (Layout.) |
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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. | 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. | Typically at the end of the day there is no open position in the market. | ||
Characteristics attributed to HFT are: | 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. | ||
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* [[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.
