3 ms·
Re: 10 microsecond latencies. I wonder what a trading algorithm could possibly do in a few thousand clock cycles that is still profitable.
by iskander 15y ago
Re: 10 microsecond latencies. I wonder what a trading algorithm could possibly do in a few thousand clock cycles that is still profitable.
- kaeluka 15y agoI wonder what in this blog post is more than pure and unjustified opinion.
- mentat 15y agoFlagged for this reason.
- peter_lawrey 15y agoI would be interested if you could expand on this speculation?
- Daniel_Newby 15y agoArbitrage. Buy something cheap on one exchange and sell it higher on a different exchange. The trader with the lowest latency gets a big chunk of the market just by being fast. You get even more if the algorithm has any ability at all to predict the future. The average profit per transaction will be small, but you get 10 million opportunities a day to repeat it.
- deleted 15y ago[deleted]
- peter_lawrey 15y agoMost of the 10 micro-seconds is spent receiving the UDP/TCP packet, decoding it, building an order request and sending it. Only a fraction of this time is left to make a decision. ;)