High Frequency Trading in New York

admin Trading June 06, 2011

The inception of computers and Internet is beneficial in the Stock market since it made trading easier. Conventionally, the Stock market is only for financial institutions and business firms to participate. With the advent of the new technology, the Stock  market expanded its horizon and catered for online traders either in the office and at home. Online trading can give you a lot of profit with less costs and also due to this trend, there are a lot of trading firms that emerged to cater the high demands in the market.  Some of the popular forms of Online trading are day trading and swing trading. Another type of Online trading is high frequency trading (HFT).

The Wall Street stock market is the biggest stock market in the world and a lot of markets in many countries are dependent on Wall Street in New York. High frequency trading in New York is quite popular since a lot of stocks and trades are happening on Wall Street. High frequency trading and the emergence of online trading are related and played a large and significant role in the New York Stock Exchange.

High frequency trading is the process of fast trading that can only be done with the aid of supercomputers and trading firms that are into HFT. It is a type of computerized trading strategy that is characterized by brief-holding periods. HFT is actually taking advantage of inefficiencies in the trading market.

In the summer of 2009, one form of high frequency trading drew the unwanted attention of the Congress and the Securities and Exchange Commission – flash orders . With flash orders, some traders can see the orders before they are placed in a matter of a millisecond for a fee.  This is done through installing supercomputers right next to the exchange’s computers and automated trading programs can place the orders ahead of time before they are placed in the market. Thus, they gain great advantage over their competitors by knowing the orders ahead. Since online trading has become popular in the nation’s stock markets for years, market experts have been complaining on the lack of consistent rules.

Are you interested to learn more about high frequency techniques and other  strategies that active traders use to make money from stock market movements?  We invite you to visit us at: http://www.equitytradingacademy.com to get more info.

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