Category: High Frequency Trading

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High Frequency Trading: To Blow Your Mind

When it comes to share prices, one thing that has always bothered me is how influential one trade can be on the market. I mean – we assume that the market is efficient enough that the last traded price is the “value” of the share in question. But that is all kinds of problematic. Example: […]

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Are Algorithms Breaking The Market?

For anyone that doesn’t already know this, the world of trading is now split between two types of trader: Humans; and Robots (AKA the algorithmic traders AKA algos). Robots…trade on new data at almost the speed of light. And “expect to reach those constraints in the next 18 months“. Back in 2010 when the guys at Chi-χ […]

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Spoofing! And flash crashes. And eye-rolling.

Every time I’ve opened up the BBC news app this week, I’ve seen this: Here’s a close-up: The basic summary: Back in May 2010, US equity markets experienced a now-infamous flash crash (pictured above), during which nearly a trillion dollars of value was lost, and then just as quickly, recovered. Apparently, this is all the fault […]

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