the.com/trading algorithms
code that never sleeps, never panics, and occasionally crashes the market by lunchtime.
means software that buys and sells financial instruments automatically based on preset rules, speed, and data rather than human judgment.
from born in the 1970s with basic program trading, then supercharged in the 2000s when exchanges went fully electronic and microseconds became money.
speedcan execute trades in millionths of a second
market shareestimated 60-70 percent of us equity volume
flash crasherased nearly 1 trillion dollars in minutes, 2010
colocationfirms pay millions just to sit servers nearer exchanges
for instance
knight capital — lost 440 million dollars in 45 minutes, 2012
renaissance technologies — medallion fund averaged 66 percent returns annually
citadel securities — handles roughly a quarter of us stock trades