lowtrade

[lowtrade]

Just found an interesting video that covers many of the subjects I just posted about HFT and todays market problems. Couldn't have done a better job supporting the way I understand the HFT system, if I scripted the video myself.

Pay attention where a data center guy 28.20 minutes into the video, shows how exchanges link data to each other. The yellow octagon with cross lines. That's the honey pot all trading house computers are mainly looking for. When the algorithms find differences in price for the same stock, at different exchanges due to micro seconds delay in the system. That's where the most basic of algorithms implement their arbitrage buying and selling in Nano seconds reaping the gains.

Worth 50 minutes of you life? Understanding the game helps !!!