3 ms·

I've read books about high frequency trading and the like, but what is the mechanism by which information from an audio feed "a few seconds" in advance of anoth

I've read books about high frequency trading and the like, but what is the mechanism by which information from an audio feed "a few seconds" in advance of another is turned into profitable trades? Is a human involved? If so, do they prepare trades to suit both directions and then hit the right button as soon as they hear the right thing on the feed?

steveklabnik 3y ago
Here is an article about the events mentioned, that has some more detail: https://www.ft.com/content/17bc0ef6-2282-11ea-92da-f0c92e957a96 https://www.ft.com/content/17bc0ef6-2282-11ea-92da-f0c92e957... > up to 10 seconds before live comments were broadcast on television or internet streams Ten seconds is a long enough time for your "if so," which is what I would guess happens in this specific circumstance. I am an amateur in this space, but in general there are a lot of misconceptions about HFT, because the details are highly technical. See the debates over "paying for order flow," for example. I think it's hard to characterize these systems because, well, they are proprietary. In my understanding, most HFT folks rely on a combination of fundamental and technical analysis, more than sentiment analysis. HFT is more of a game of "make a small amount of money trading all the time" than "wait until some news breaks and reacts to it."