Hey guys/girls!
I wrote a new blog post tonight about HFT ... feel free to read/comment/ask questions here or clarify anything you think could be made clearer! I tried to make it relatively simple to understand but I know HFT is a crazy thing so there might be some details even I don't fully understand and I'm always willing to hear other opinions. Anyway, here!
"And on the 987,455,439,573,659,397,753,424th day, man created high frequency trading.
Alright, so maybe the exact day is a bit off, but high frequency trading has become a hot issue in modern markets. Even still, it’s a very opaque subject and I’ve found that most people I talk to only understand the theory behind it and not much more. If you asked them to point out an example of high frequency trading or explain how it affects retail traders day to day they wouldn’t be able to do it other than to say “It’s not fair!” or something similar. The lack of understanding though is, well, understandable. High frequency trading is an incredibly complex subject and by its very nature it happens extremely quickly, on a nano- and millisecond timeframe, so it can be difficult to spot. There are also thousands of different ways that high frequency trading firms can make money, and trading algorithms are like fingerprints: no two are exactly the same. So, on a quest to be able to blog about high frequency trading at a level that the average trader could understand, I went on the hunt for a thin stock where I could catch an HFT in action as I traded it."
Full post: http://ift.tt/1EXtbuN
Submitted May 02, 2015 at 02:26AM by ghostofgbt http://ift.tt/1DR2WQQ
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