Most trades (by amount of transactions and by volume) are done automatically by algorithms and the computers on which these algorithms are running are placed as close as possible to the servers of the stock markets because they have an absolute "first in first served doctrin" and the closer you are the more uptodate your information, so location matters more than ever before, the shouting brokers have just been replaced by autonomous computers at the same location. Hosting this location and having the power to decide who is how close to this is a trillion dollar advantage for the countries of the big stock markets.Actually, all the important trades on the stock market are done online nowadays. The era of brokers shouting out on the wall street stock exchange is past. At best you need to house the servers handling galaxy-wide trade orders.
Understanding High-Frequency Trading Terminology
As with most businesses, those involved in high-frequency trading have developed a system of terminology shorthand unique to the field. The upsurge of investor interest in high-frequency trading (HFT) makes it important for industry professionals to come up to speed with HFT terminology.
And this advantage isn't just only for hft.
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