trading firms: This form of trading was thrust into the spotlight after the release of Michael Lewis's book Flash Boys in 2014, according to The Guardian. What sort of firm carries it out Most high-frequency trading is carried out by investment banks and hedge funds using automated trading platforms, but there are also high-frequency trading firms dedicated to the craft. As the name suggests, speed is key and firms can gain an advantage by moving milliseconds earlier than their competitors. It is not clear which hedge funds were involved in the Bank of England breach. The computers will place large volumes of trades across different markets in order to increase profitability on transactions that would otherwise have very small profit margins owing to the marginal movements in share or currency markets that the trades are seeking to capitalise on . So size and speed is how they make their money. How do you make money from it The algorithms can find new trends across global markets and trade on them automatically before other players have a chance to catch on.
(news.financializer.com). As
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