High frequency trading: Difference between revisions
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* [[Computer based trading]] | * [[Computer based trading]] | ||
* [[Day trading]] | * [[Day trading]] | ||
* [[Investment horizon]] | |||
[[Category:Identify_and_assess_risks]] | [[Category:Identify_and_assess_risks]] | ||
[[Category:Financial_products_and_markets]] | [[Category:Financial_products_and_markets]] | ||
[[Category:Technology]] | [[Category:Technology]] | ||
Revision as of 14:16, 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.
