discussion - week 4.docx - How does HFT affect the market...

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How does HFT affect the market? Is HFT illegal? Unethical? Do you believe that the stock market is efficient? How do you feel about investing in the stock market now? HFT is a type of algorithmic financial trading characterized by high speeds, high turnover rates and high order to trade that uses borrowed capital (an investment by individuals, comma, or other entities) expecting to profit using high frequency financial data and electronic trading tools. It looks that data at high speed detects it and makes a decision in a millionth of a second, giving the result you need. The speed advantage is what makes money for some traders. Those who are able to be closer to the stock exchange gain an extra speed advantage. HFT race to be the first in the market. Most trading is done through computers using high trading algorithms making decisions in a billionth of a second as to which stocks to sell and what stocks to buy, making millions of dollars.

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