Join the NASDAQ Community today and get free, instant access to portfolios, stock ratings, real-time alerts, and more! This piece is the first segment in a series on High Frequency Trading HFTs.

HFT is the acronym that much of the trading community loves to hate. If statistics are correct, it accounts for the overwhelming majority of market volume every day. It's also so complex and secretive that a relative few know how it works.

It depends who you ask but everybody's definition has one fact in common: A day trader that holds a stock for minutes is slow compared to a high frequency trading firm a computer that measures trades in microseconds, or one millionth of a second. In its most basic form, a firm in the HFT business has created a computer algorithm that trades on market inefficiencies.

On Sunday, Marketfy sponsored an HFT webinar. By taking advantage of that 'speed of light' inefficiency, the trading firm could make or lose money-measured in pennies. By running trades like this throughout the market day and collecting rebates that come with being a market maker, HFT with the right computer algorithm can generate large revenue.

View Marketfy's high frequency trade webinar here. The use of a special computer program or algorithm doesn't necessary indicate high frequency trading.

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Nearly all Wall Street participants, including retail investors, place limit and stop orders that will buy or sell only when certain criteria are met. HFT algorithms also apply certain criteria before making trades but they do it on a faster and more sophisticated scale.

The computers that run HFT algorithms aren't out-of-the-box desktop machines. They're supercomputers strategically placed to shave off microseconds from the time the order is sent to the time it reaches the exchange. The algorithm is constantly being tweaked and changed to maximize performance in changing market conditions. The success of an HFT firm is largely based on the quality of the algorithm.

GS and Morgan Stanley NYSE: MS are two of the well-known firms that reportedly operate HFT desks, but many are hedge funds and other firms that operate outside of the ubl pakistan dollar rate eye.

This is the first of a multi-part series on high frequency trading. Don't forget to view or webinar that took place on April 7, It's one hour full of in-depth information that every trader should hear.

The free webinar can be found on the Markety platform by clicking here. Gain access to a streaming platform with all the information you need to invest better today. Click here to start your 14 Day Trial of Benzinga Professional. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Enter up to 25 symbols separated by commas or spaces forexplaat bedrukken the text box below.

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Join Today Already a member? What eve online stock market guide High Frequency Trading? April 09, This piece is the first segment in a series on High Frequency Trading HFTs HFT is the acronym that much of the trading community loves to hate.

It's high frequency trading, or HFT. Here's some of what you should know. This article appears in: InvestingCommoditiesETFsFuturesInvesting IdeasOptions. Today's Best of Benzinga Trade on the news with Benzinga Professional, Benzinga's real-time news feed More News onMS. Benzinga Market Analysis, FinTech. Most Popular Highest Rated.

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