High Frequency Trading (finishing ... ）

What is a high-frequency trading system

1 Trading instructions are completely sent by the computer, the response to market data delay in the microsecond level
2 system has a dedicated hardware and software components, research and development needs a lot of computer expert-level work
3 The hardware of the system needs to be placed close to the exchange host, so-called co-location. and obtain a special access permit, the trade order is sent to the exchange.

In accordance with the above three points, it can be called high-frequency trading system (Hi Frequency Trading HFT)

The so-called "high-frequency", not necessarily refers to the high frequency of transactions, some systems are only under the Commission and modification, the frequency of withdrawal of the Commission is high, the actual number of transactions may not be many,
Same as the high frequency trading system


U.S. Securities and Exchange Commission (SEC). The SEC also has a hard time giving a clear definition, and the final description is based on 5 features:

1 using ultra-high-speed complex computer system to order
2 data channels using co-location and direct-connect exchanges
3 The average time for each position is very short
4 Bulk Send and cancel a consignment order
5 Close position (without holding overnight)


The Monster High-frequency trading speech

1 Ultra-strong profitability (as if the high-frequency trading machine is similar to the printing machine);
2 purely by trading money, with a mysterious mathematical model and cutting-edge technology, accurate prediction of market trends, with unparalleled advantages in the market
3 using the speed advantage to cut the meat of other agency-like traders


Next time you meet this guy, just shut up.

The true essence of this industry:
Paranoid technology supremacy, and its complex technical problems, crazy pursuit of the ultimate machine performance, as well as high-intensity competition


Types of high-frequency trading
1 Passive City (poaaive market Making)
2 Arbitrage (Arbitrage)
3 Structuring (Structural)
4 Trends (directional)

In the above strategy, the market-making strategy is actually the best business model, with the nature of sustainable development.

High Frequency Trading (finishing ... ）