What's New with FFP Wealth Management?
High Frequency Trading (HFT) has been getting a lot of press lately. This is due to deals where companies get reports and indexes early because of special agreements that are in a gray area, they are not legal and yet not illegal, and are making these companies millions and millions of dollars in milliseconds. What major news has not reported on is the magnitude that HFT’s are used. The reality is that 50-60 percent of all trades are made by HFTs. What is HFT?
In general, HFT is a strategy in which highly sophisticated computer algorithms are used to place trades in rapid succession, often taking place in as little as a few milliseconds. These algorithms are commonly used in conjunction with market or economic data which is released from media outlets, stock exchanges, or data centers.
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