Actually HFT's get paid by the exchanges to trade because they provide liquidity. So they make the spread and get 0.005 cents per share. So, they do not pay for anything as long as they met volume requirements.
Because HFT code has to have very low latency and is written in C++ mostly. You have to understand the kernel's operations and network stack well to optimize your code to the last level. Doesn't matter that much cause that book is dated and covers an older kernel version covering deprecated process schedulers.
here is my problem I have been making losses trying to make trade. I thought to trade demo is just like the real..can anyone help me out or at least tell me on what to do.
This was almost always the case. The most prestigious trading firms always looked to hire people with high mathematical or engeneering degrees to develop strategies.
Great explanation but total crock of b.s. The only lesson learned here is a person can look up right in the face, and tell a bold explanatory lie. These guys front run stocks. They see you want to buy a stock they had 0 intention of purchasing . Buy them BEFORE you. Then sell them to you at a higher price. They do this millions of times a day. Basically cheating but perfectly legal as of now.
Amen brother. More than 70% of the volume is now these computers fishing for orders. Running for stops is all arbitrage for these things. We r fucked lol
You're absolutely wrong. In order for any trader to "front-run", they must have prior information about the stock... This means, they have to receive information BEFORE everyone else. HFTs are totally unable to receive information before the public; they are just able to receive and process it FASTER, than everyone else. They're also not cheating. In any way... they're providing a service that reduces market inefficiencies and increases market liquidity.
I really don't see the big deal, to be honest. They scalp fractions of pennies from buyers and sellers. Decades ago buying and selling stocks had commission fees of $40, today it's practically free (Robinhood). I doubt many of you are buying and selling millions of shares per day to really care that someone got in front of you and scalped off 1/10 of a penny from your trade. This really only affects huge institutional investors, and for regular investors, it increases liquidity.
is it mandatory to know trading to get into an hft???......and what precision of trading is required to get into the trading posts over there?? plz answer my question !!
@@rudhirmahalik IIT is an excellent school for it. From what I’m aware though, a very common thing Indians in quant do is study at IIT for their undergrad then get their doctorate from a top school in America. Top quant firms have great connections with schools like MIT, Harvard, Princeton, and Stanford. So if you get into IIT in India, you have a pretty good chance of breaking into quant.
He's a liar or doesn't know what he's talking about. HFT does in fact effect share price and not only do retail traders lose money, but also long term investors do as well. This can be explained by basic logic and math. The thing is where do you draw the line with what is acceptable and what isn't? Day/ Swing traders basically do the same thing, so it's debatable whether or not HFT should be allowed.
With all due respect, how can a hedge fund lose $300 million a year, since the introduction of HFTs. Even during profitable years they make $300 million less. And if you don't care about hedge funds, the same happens to pension funds.
This reporter is VERY weak. She doesn't know anything about HFT, the questions asked are VERY poor. A good reporter would give this guy a MUCH harder time.
+bigkula1 Giving the guy a harder time is not the purpose of the interview. Under duress interviewees tend to answer emotionally and that is not necessarily the "truth" coming out. Also, this is a 3 minute clip of the entire report so should see the rest before complaining.
+CNN Many thanks, I've been looking for "how to scalp any market" for a while now, and I think this has helped. Ever heard of - Ellieton Tradify Bulldozer - (just google it ) ? Ive heard some awesome things about it and my brother in law got excellent success with it.
@bigkula. This was great, I've been looking for "futures options trading platform" for a while now, and I think this has helped. Have you ever come across - Ellieton Tradify Bulldozer - (should be on google have a look ) ? Ive heard some unbelievable things about it and my neighbour got great results with it.
Yeah just like traders blame hedge funds for shorting stocks they own(gme for example). How about learning an actual investing strategy, or trade setup. Smh. You never hear people they make money blaming others. Its those who dont make money who always have a finger to point.
Too many people over there by a HFT group,,, independents are more familiar with those concepts,,, APIs of some many brokers,,,, valuable traders high numbers of pips and good buy and sell decisions.... by the way those jobs need to desappear cause of automation.... and not pay people for sitting some hours wasting time
He's right. Traditional asset management is 'built largely on an "illusion of skill."' (See Kahneman - Thinking Fast and Slow). Most HFT provides liquidity to the market by trading options as delta neutral as possible (which he tried to explain). Complaining about HFT because of speed advantages is the same as complaining about Ronaldo being a great player... we see that a lot too. Don't enter the markets if you can't take a loss.
+MathTheMatrix Bullshit, do your homework. HFTs do NOT create liquidity for you. You don't benefit at all from that extra liquidity. Please explain to me how front running isn't illegal, how spoofing isn't illegal. These are just some of the practices done by HFTs to make money. I don't claim that all HFTs do this, but some of them are literally screwing everyone over. Even ex-employees of HFT firms claim this. The HFTs get direct feed, while your feed is from the SIP, which is slower. Those couple of milliseconds are enough for them to make money of you. Complaining about HFTs is like complaining about why Usain Bolt keeps losing against a jet fighter. Your example is wrong.
how can they provide liquidity if they are making buy and sell orders at the exact same time. they are doing nothing but front running and manipulating the prices and manipulating buyers and sellers.
@@oo-fn6gpI am HFT trader we don't punch Buy & Sell order at same strike price, We Provide Liquidity By Placing Order At Different Strike Price With Delta Netural strategy
Here's the problem with that indian dude's argument about how HFT do not impact volatility. They are not buying and selling the SAME stock. they are buying one stock and selling a different stock. This is a typical strategy called Long/Short. The problem here is that when these stocks start to favor a down or up side of a trade, other HFT jump on the same trade and put Sell pressure on the stock that the other HFT are selling and buy pressure on the stock other HFT are buying. This rips volume
Yes, because they buy for lower than the sell. They get a preferential order type executed ahead of the real trade orders that are coming in, turn around and sell it to the real buyers.
They are not the market, they are a side car to the market. Since people don’t really understand what he is talking about, for the most part, he can throw around lingo and words and show banks of computers and talk about “technology”, “efficiency”, and old “business models”, and people assume they know what he is talking about. He was bullshitting, but in most cases, that is all these guys need to do to confuse most people asking them questions, IMHO. You can’t even be sure he fully comprehends exactly what his “business” model is actually doing to markets. He may actually believe that crap. Belief doesn’t actually make it true though... just ask the QAnon folks. Lots of previously learned ideas, are going to be relearned in years ahead, about currencies, financial crises, banks and markets. People think they’ve reinvented the wheel, but in many cases they have just gotten around rules that protect the markets and people, but we’re written so long ago, for markets that have been modified by wired and black boxes.
So basically High frequency traders are like flies or leaches that latch on to businesses to suck the money from them. As long as you and I buy stocks they will always have money to take.
I'm no advocate; but, I would respectfully disagree. They're doing what ALL traders try to do, buy low sell high. The difference is that their algorithms can perceive it and execute it correctly 1,000 times before a human can even write down the name of the stock. The difference is speed and accuracy. *(but, yeah, not FAIR at all! It should probably be illegal.)* 🤔😉
All this guy saying is BS, high frequency trades adds nothing productive to stock trades and is PARASITIC by nature. The costs to the market greatly outweigh any minimal added liquidity that isn't even much needed in these days...
It's simple, They're making money too fast and as a result you have the "dinosaurs" screaming unfair. So truth of the matter is, the game has changed and the bar has risen...GET WITH THE TIMES!
I am not completely against HFT but the point of buying stocks is to give your money to a company so that the company grows, allowing your money to grow with it. In the case of HFT, you give your money to a company and you sell it a second later, so what is the point of doing that? The company might as well go private and save itself the troubles associated with the stock market.
Which is what's likely to happen. Any company that isn't the newest best thing ever is gonna stay private. You won't see any,ore companies that just do some moderate things. It will only be the teslas Microsofts and facebooks.
What a con artist. His company absolutely affects the temporary price of a stock. He buys it at one price and quickly sells it at another. He is a ticket scalper
ethan xu Hos comment is disingenuous HFTs are ticket scalpers plain and simple They serve absolutely no purpose other than to leech off the fair trades of others
Actually HFT's get paid by the exchanges to trade because they provide liquidity. So they make the spread and get 0.005 cents per share. So, they do not pay for anything as long as they met volume requirements.
That Linux kernel book though..... [0:26]
yeah. why is that there
Because HFT code has to have very low latency and is written in C++ mostly. You have to understand the kernel's operations and network stack well to optimize your code to the last level. Doesn't matter that much cause that book is dated and covers an older kernel version covering deprecated process schedulers.
I HAVE INCURRED SO MUCH LOSSES TO TRADE ON MY OWN,I TRADE WELL ON DEMO BUT I THINK THE REAL MARKET IS MANIPULATED.
Should I give up on Trade?
What should I do?
How may I do better?
What I'm I doing incorrectly?
here is my problem I have been making losses trying to make trade. I thought to trade demo is just like the real..can anyone help me out or at least tell me on what to do.
I always advice new members to have an orientation on how it works before getting involved. Trade offers more benefits than just holding.
Kate Floretta
Face book
Google " katefxfloretta " anywhere take classes to learn to trade.
the dude practiced his defenses 1000x over and the reporter had 0 clue what's going on. weak.
HFT firms are good for the industry. They add liquidity and allow spreads to be a penny wide.
agreed
Haahaha...they are thieves!
It is all about numbers and calculations; it's no longer about the money. If anyone is great with numbers, he or she can start trading.
This was almost always the case. The most prestigious trading firms always looked to hire people with high mathematical or engeneering degrees to develop strategies.
It’s like fleas complaining that dogs want to wear flea collars
We will rule with Quantum trading
His answers were brilliant, it is always sad to see people refusing to get with the times.
How is it "in action" when no action was taken during this video clip???
What type of computer configuration and net speed are basically used in HFT..?
india got no hft yet , indian transaction in 2021, is still slow
@Jog Antani hft are only available for institutions or the members of nse, who only can get direct market orders
@Jog Antani he was from england, not India, and it was a fake orders which got cancelled in nanoseconds
@Jog Antani hft is different and algo is totally different
Please upload 1080p
sorry . but this title is misleading.
Indian founder here too.
Watching this in 2023 😂
Why ?
I saw a linux kernel book
I can't believe I'm coming to CNN to understand something... I will take it with a grain of salt until I see this info verified elsewhere.
"In Action"???? umm no.
Ayee, What's good pete?
1998, 2008 is because of human stupidity. If it weren't for technology, we would never recover.
We just hit all time highs
Great explanation but total crock of b.s. The only lesson learned here is a person can look up right in the face, and tell a bold explanatory lie. These guys front run stocks. They see you want to buy a stock they had 0 intention of purchasing . Buy them BEFORE you. Then sell them to you at a higher price. They do this millions of times a day. Basically cheating but perfectly legal as of now.
Amen brother. More than 70% of the volume is now these computers fishing for orders. Running for stops is all arbitrage for these things. We r fucked lol
You're absolutely wrong. In order for any trader to "front-run", they must have prior information about the stock... This means, they have to receive information BEFORE everyone else. HFTs are totally unable to receive information before the public; they are just able to receive and process it FASTER, than everyone else. They're also not cheating. In any way... they're providing a service that reduces market inefficiencies and increases market liquidity.
that what hft is buy them before you then sell them to you at a higher price
I really don't see the big deal, to be honest. They scalp fractions of pennies from buyers and sellers. Decades ago buying and selling stocks had commission fees of $40, today it's practically free (Robinhood). I doubt many of you are buying and selling millions of shares per day to really care that someone got in front of you and scalped off 1/10 of a penny from your trade. This really only affects huge institutional investors, and for regular investors, it increases liquidity.
That's why i don't trade you can't compete with this technology.
AMC will be their downfall
Market makers earn more during periods of high volatility
This is one of the worse interviews I have seen on HFT's though it's worth it just to see that kid running at 1:55
Just listen to this Indian Tech speaks. Listen to his key words and you will know that he is in it all together. He needs to make a living. LOL
is it mandatory to know trading to get into an hft???......and what precision of trading is required to get into the trading posts over there??
plz answer my question !!
You need to be extremely brilliant in mathematics, statistics and programming.
You need a PhD in either math, physics, computer science, or electrical engineering from a top ranked school like Stanford or MIT
@@BillyBJohnson ok....and does the list includes top colleges from india like IIT IISC OR NIT??
@@rudhirmahalik IIT is an excellent school for it. From what I’m aware though, a very common thing Indians in quant do is study at IIT for their undergrad then get their doctorate from a top school in America. Top quant firms have great connections with schools like MIT, Harvard, Princeton, and Stanford. So if you get into IIT in India, you have a pretty good chance of breaking into quant.
It's called momentum ignition.
Why would you ask?
He's a liar or doesn't know what he's talking about. HFT does in fact effect share price and not only do retail traders lose money, but also long term investors do as well. This can be explained by basic logic and math. The thing is where do you draw the line with what is acceptable and what isn't? Day/ Swing traders basically do the same thing, so it's debatable whether or not HFT should be allowed.
With all due respect, how can a hedge fund lose $300 million a year, since the introduction of HFTs. Even during profitable years they make $300 million less. And if you don't care about hedge funds, the same happens to pension funds.
This reporter is VERY weak. She doesn't know anything about HFT, the questions asked are VERY poor. A good reporter would give this guy a MUCH harder time.
+bigkula1 Giving the guy a harder time is not the purpose of the interview. Under duress interviewees tend to answer emotionally and that is not necessarily the "truth" coming out. Also, this is a 3 minute clip of the entire report so should see the rest before complaining.
+bigkula1 You are confusing journalism with sensationalism. If you want the latter go buy a US weekly and stop calling it journalism.
+CNN Many thanks, I've been looking for "how to scalp any market" for a while now, and I think this has helped. Ever heard of - Ellieton Tradify Bulldozer - (just google it ) ? Ive heard some awesome things about it and my brother in law got excellent success with it.
@bigkula. This was great, I've been looking for "futures options trading platform" for a while now, and I think this has helped. Have you ever come across - Ellieton Tradify Bulldozer - (should be on google have a look ) ? Ive heard some unbelievable things about it and my neighbour got great results with it.
Typical jealous soul trying to give hard time ... Get a life
AMC!!!!
the people against high frequence trading are people looking for excuses why they lost all their money in the stock market
Yup, flash crash in yesteryear's was a black swan event, today they blame HFT's
Gavin Crouch gotta blame someone for your loses
Yeah just like traders blame hedge funds for shorting stocks they own(gme for example). How about learning an actual investing strategy, or trade setup. Smh. You never hear people they make money blaming others. Its those who dont make money who always have a finger to point.
@@wallstreetwarrior7840 how much money u have actually made...what’s u percentage of return?
I see the correlation=0.97 . Mine 0nly 0.63
This has aged well
Too many people over there by a HFT group,,, independents are more familiar with those concepts,,, APIs of some many brokers,,,, valuable traders high numbers of pips and good buy and sell decisions.... by the way those jobs need to desappear cause of automation.... and not pay people for sitting some hours wasting time
This reporter is irritating me. Christ lady, look for someone else to blame.
He doesn't look rich, maybe looks can be deceiving. He could be a billionaire.
maybe not rich but maybe doing well for himself
He's right. Traditional asset management is 'built largely on an "illusion of skill."' (See Kahneman - Thinking Fast and Slow).
Most HFT provides liquidity to the market by trading options as delta neutral as possible (which he tried to explain). Complaining about HFT because of speed advantages is the same as complaining about Ronaldo being a great player... we see that a lot too. Don't enter the markets if you can't take a loss.
+MathTheMatrix Bullshit, do your homework. HFTs do NOT create liquidity for you. You don't benefit at all from that extra liquidity.
Please explain to me how front running isn't illegal, how spoofing isn't illegal. These are just some of the practices done by HFTs to make money. I don't claim that all HFTs do this, but some of them are literally screwing everyone over. Even ex-employees of HFT firms claim this. The HFTs get direct feed, while your feed is from the SIP, which is slower. Those couple of milliseconds are enough for them to make money of you.
Complaining about HFTs is like complaining about why Usain Bolt keeps losing against a jet fighter. Your example is wrong.
how can they provide liquidity if they are making buy and sell orders at the exact same time.
they are doing nothing but front running and manipulating the prices and manipulating buyers and sellers.
@@oo-fn6gpI am HFT trader we don't punch Buy & Sell order at same strike price, We Provide Liquidity By Placing Order At Different Strike Price With Delta Netural strategy
Here's the problem with that indian dude's argument about how HFT do not impact volatility. They are not buying and selling the SAME stock. they are buying one stock and selling a different stock. This is a typical strategy called Long/Short. The problem here is that when these stocks start to favor a down or up side of a trade, other HFT jump on the same trade and put Sell pressure on the stock that the other HFT are selling and buy pressure on the stock other HFT are buying. This rips volume
idtx
He said, "we buy as much as we sell", as a way to hand-wave responsibility. That "explanation" is complete bullshit.
Yes, because they buy for lower than the sell. They get a preferential order type executed ahead of the real trade orders that are coming in, turn around and sell it to the real buyers.
Buy AMC & HOLD
@The Inner Circle Trader
Market maker
Market book flood is fucked. Sell option spreads!!!!
Where was the action BS
Click Bait BS
They are not the market, they are a side car to the market. Since people don’t really understand what he is talking about, for the most part, he can throw around lingo and words and show banks of computers and talk about “technology”, “efficiency”, and old “business models”, and people assume they know what he is talking about. He was bullshitting, but in most cases, that is all these guys need to do to confuse most people asking them questions, IMHO. You can’t even be sure he fully comprehends exactly what his “business” model is actually doing to markets. He may actually believe that crap. Belief doesn’t actually make it true though... just ask the QAnon folks. Lots of previously learned ideas, are going to be relearned in years ahead, about currencies, financial crises, banks and markets. People think they’ve reinvented the wheel, but in many cases they have just gotten around rules that protect the markets and people, but we’re written so long ago, for markets that have been modified by wired and black boxes.
Clark Carol Rodriguez Carol Johnson Karen
They are thieves!
So basically High frequency traders are like flies or leaches that latch on to businesses to suck the money from them. As long as you and I buy stocks they will always have money to take.
Exactly!
I'm no advocate; but, I would respectfully disagree. They're doing what ALL traders try to do, buy low sell high. The difference is that their algorithms can perceive it and execute it correctly 1,000 times before a human can even write down the name of the stock. The difference is speed and accuracy.
*(but, yeah, not FAIR at all! It should probably be illegal.)* 🤔😉
@@MarkLipka Thus by plugging directly in Exchange servers, yeah so fair and even level play field lol
All this guy saying is BS, high frequency trades adds nothing productive to stock trades and is PARASITIC by nature. The costs to the market greatly outweigh any minimal added liquidity that isn't even much needed in these days...
It's simple, They're making money too fast and as a result you have the "dinosaurs" screaming unfair. So truth of the matter is, the game has changed and the bar has risen...GET WITH THE TIMES!
What?
Because they sell and buy the volatility keeps unchanged?
Oh yeah, bulshitting 202...
you mad bro?
Ban high frequency trading, these scumbags hurt the stock market.
Gonna cry?
I am not completely against HFT but the point of buying stocks is to give your money to a company so that the company grows, allowing your money to grow with it. In the case of HFT, you give your money to a company and you sell it a second later, so what is the point of doing that? The company might as well go private and save itself the troubles associated with the stock market.
Which is what's likely to happen. Any company that isn't the newest best thing ever is gonna stay private. You won't see any,ore companies that just do some moderate things. It will only be the teslas Microsofts and facebooks.
When you buy a share in the market, you don't give money to the company, you give it to the owner of the share.
@@hamzaelmernissi5709 Most people don't understand that about the public market.
Ha.
CNN sucks
What a con artist. His company absolutely affects the temporary price of a stock. He buys it at one price and quickly sells it at another. He is a ticket scalper
So what?
ethan xu Hos comment is disingenuous
HFTs are ticket scalpers plain and simple
They serve absolutely no purpose other than to leech off the fair trades of others
unfortunately i think its legal
hate the game not the player