Saturday, March 29, 2014

HIGH FREQUENCY TRADING (HFT) ALGO BOTS


A special class of algorithmic trading is "high-frequency trading" (HFT), in which computers make elaborate decisions to initiate orders based on information that is received electronically, before human traders are capable of processing the information they observe.

As of 2009, high frequency trading firms account for 73% of all US equity trading volume; about 20% of options volume expected to be computer generated by 2010.

As of October 2013, Eric Hunsader, founder of Nanex estimates that 90-95% of all orders placed come from high frequency machines.

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