Difference between revisions of "High Frequency Trading"
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| + | Financial markets have undergone a dramatic change. Traders no longer sit in trading floors buying and selling stocks with hand signals. Transactions are executed electronically by computer algorithms. The application of algorithms on financial markets promotes a new type of electronic market maker called high-frequency traders. | ||
| + | High-frequency trading (HFT), is a method of trading that uses powerful computer programs to transact a large number of orders at extremely high speeds. It uses complex algorithms to analyze multiple markets and execute orders based on market conditions. These platforms allow traders to make a transaction in a matters of seconds. Typically, the traders with the fastest execution speeds are more profitable than traders with slower execution speeds due to market nature. | ||
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=== Features === | === Features === | ||
=== Ethical Concerns === | === Ethical Concerns === | ||
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| + | === Reference === | ||
| + | https://www.investopedia.com/ask/answers/09/high-frequency-trading.asp | ||
Revision as of 13:33, 13 March 2020
Financial markets have undergone a dramatic change. Traders no longer sit in trading floors buying and selling stocks with hand signals. Transactions are executed electronically by computer algorithms. The application of algorithms on financial markets promotes a new type of electronic market maker called high-frequency traders. High-frequency trading (HFT), is a method of trading that uses powerful computer programs to transact a large number of orders at extremely high speeds. It uses complex algorithms to analyze multiple markets and execute orders based on market conditions. These platforms allow traders to make a transaction in a matters of seconds. Typically, the traders with the fastest execution speeds are more profitable than traders with slower execution speeds due to market nature.
Features
Ethical Concerns
Reference
https://www.investopedia.com/ask/answers/09/high-frequency-trading.asp
