High frequency trading: Difference between revisions

Revision as of 15:57, 13 April 2016

(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.

Revision as of 11:04, 27 August 2013 (view source) imported>Doug Williamson m (Spacing 27/8/13) ← Older edit		Revision as of 15:57, 13 April 2016 (view source) imported>Doug Williamson (Standardise heading.) Newer edit →
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	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.