Can someone explain something about HFT

T

tsgiannis

Hello to everybody
I have many questions about HFT and i can't find definite answers...
One thing i found today is this post...in the attachment you will see a clearer picture
hft.jpg
Well i can't really understand the original buyer buys at 30.02 instead 30.01....why he/she accepts the higher price....
 
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tsgiannis said:
Hello to everybody
I have many questions about HFT and i can't find definite answers...
One thing i found today is this post
Well i can't really understand the original buyer buys at 30.02 instead 30.01....why he/she accepts the higher price....
More...

Any member that has made HFT system is going to tell you zero on anything about it to keep it secret. You can contact Hedge funds and see if they will show you but guess what, they most likely won't either.
 
I read more carefull the article and the buyer has a range i guess from 30.00 to 30.10...so if its in acceptable range it would be acceptable....
Interesting article....
 
tsgiannis said:
Well i can't really understand the original buyer buys at 30.02 instead 30.01....why he/she accepts the higher price....
More...

He doesnt have to accept it. He can wait for the price to fall. However he then risks it going even higher.
 
This particular HFT scenario could be easily avoided if the exchanges provided good after time orders, send your orders to all the exchanges, they go live on every exchange at exactly the same time guaranteed.
No way the HFT's can then front run your order in this way.
 
To avoid the affect of HTF use limit order at the price your willing to pay/sell. Sure HFT may beat you on the trade but they need to place their order less then yours. So what they make fractions, you made your trade at your price, and they provided liquidity.
 
southall said:
This particular HFT scenario could be easily avoided if the exchanges provided good after time orders, send your orders to all the exchanges, they go live on every exchange at exactly the same time guaranteed.
No way the HFT's can then front run your order in this way.
More...


Or you could just place your trades on IEX !
 
truetype said:
Is there any evidence fills on IEX are better?
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Yeap, read Flash Boys By Lewis, I have just finished it. The evidence is there. IIRC they get the midprice fills like 70% of the time compared to 10-20% at other exchanges.
 
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