HFT (High Frequency Trading) is the latest buzz of wall street. You know what.. computers are earth's biggest stock trader and an estimated 70% of trading volumes are generated by computers trading against one another. Those who have the best code and tons of computer chip wins.
At stake is billions of dollars for the Wall st giants and they are using computers to bully small investors like me.. It's time to buy a super computer to make my pennies.
From FT..
The technology essentially involves automated tick-by-tick, high turnover buying and selling, which relies heavily on the speed and sophistication of the network and computer systems involved. These are lightning fast and voluminous trades to take advantage of minute and fleeting changes in prices. Speed is obviously essential — as is beating the competition to an arbitrage opportunity.
Great HFT articles..
http://arstechnica.com/tech-policy/news/2009/07/-it-sounds-like-something.ars
http://ftalphaville.ft.com/blog/2009/07/08/60761/the-cold-war-in-high-frequency-trading
