High frequency trading: Difference between revisions

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Characteristics attributed to HFT are:  
Characteristics attributed to HFT are:  


#extraordinarily high speed using sophisticated computer programs for generating, routing, and executing orders;
#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;  
#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;  
#Very short time-frames for establishing and liquidating positions;  
#the submission of numerous orders that are cancelled shortly after submission;  
#The submission of numerous orders that are cancelled shortly after submission;  
#ending the trading day in as flat a position as possible.
#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:

  1. Extraordinarily high speed using sophisticated computer programs for generating, routing, and executing orders;
  2. Use of co-location services and individual data feeds offered by exchanges and others to minimize network and other types of time delays;
  3. Very short time-frames for establishing and liquidating positions;
  4. The submission of numerous orders that are cancelled shortly after submission;
  5. Ending the trading day in as flat a position as possible.


See also