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Easy Money with Algorithmic Trading

Easy Money with Algorithmic Trading

Investors love making money. They analyses a company, look at its financial background, and check the media analysis to know the direction the stock might take. This might take a long turn since the calculations are just probabilities. It might also take a very long time before their money gives returns. There is an easier, ...

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Summary : If you are an investor looking for a platform to make money, flash trading is the way to go.

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Investors love making money. They analyses a company, look at its financial background, and check the media analysis to know the direction the stock might take. This might take a long turn since the calculations are just probabilities. It might also take a very long time before their money gives returns. There is an easier, less tiring way to do your investments. Welcome to Flash trading.

Thomas Peterry, a member of the American stock exchange came up with an idea that reduces these risks, buys and sells, faster than human beings. He wrote a code that could help computers do the work of several workers at a go and at a very high speed. This enables the computers to do five thousand trades in every two hundred and fifty milliseconds. Fast, right? This guarantees about 1,200,000 trades every hour. This is what is popularly known as the HFT, high frequency trade. It works faster that you can think!

With such high trade numbers, the investors earn about $0.01 or $0.001 in every trade. This might seem like such a small number but it makes quite a health sum of money when put together every hour. This is a safer mode of trading since the site is protected and cases of people losing their money are close to zero. This way, the investor can continue with his or her life as the machine does most of the heavy duty.

Algorithmic trading is the use of electronic platforms to make trade orders using an algorithm which executes pre-programmed trading instructions using variables like quantity, time and price. It is like teaching the computer what kind of trade you are into then letting it do most of the work. Therefore, high frequency trading is a type of algorithmic trading and there is little or no difference between the two.

The advantage of flash trading is the orders have already been subjected to scrutiny and therefore it relieves the investor of some of the heavy analytical work. The disadvantage of this is that some of the investors believe that it is harmful to market transparency. Proponents of flash trading state that it is necessary to provide liquidity for exchanges.

If you are an investor looking for a platform to make money, flash trading is the way to go. This is the one place where ‘easy money’ really is true. To learn more visit http://www.Farctate.com

About Emma G.

Working in the marketing industry since 2002. This blog is one of my hobbies.

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