Is High Frequency Trading a Dark Force Against Ordinary Human Traders and Investors?

High Frequency Trading (HFT) is the use of computer algorithms to rapidly trade stocks. Highly sophisticated proprietary strategies are programmed to move in and out of trades in timeframes as little as fractions of a second.  It is a business dominated by a few giants as it is a sandbox that costs many millions to play in. There are many facets to High Frequency Trading. I knew roughly what High Frequency Trading was, but in this article I try to understand some of the nuance of a phenomenon that, as we will discover, is the dominant force on the exchanges today.

Forbes’ Richard Finger interviewed several people highly knowledgeable on this arcane and little understood subject. Rob Friesen, President and Chief Operating Officer at Las Vegas based Bright Trading. Dennis Dick, CFA a 15 year proprietary trader and market structure consultant for Bright Trading. Eric Hunsader is an expert in analyzing quote traffic and is founder and chief executive of data-feed provider Nanex, LLC headquartered in Winnetka, Illinois.

Read more

Advertisements
This entry was posted in Dark Pools, Equity Markets, Flash Crash, High Frequency Trading, knight capital, Market Making, NASDAQ, NYSE and tagged , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s