High frequency trading: Difference between revisions
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imported>Doug Williamson (Added term as suggested by John Grout) |
imported>Doug Williamson m (Spacing 27/8/13) |
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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]] | ||
Revision as of 11:04, 27 August 2013
(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.
