Anonymous Coward
User ID: 46010804
 Japan
08/31/2013 08:12 PM
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Report Copyright Violation | Arbitrage on Equities in Millisecond Timeframes : the banks have officially stopped fucking you vaginally and gone straight to anal Here’s how Hendershott’s latency-arbitrage strategy worked: Redline allowed him to use its “direct market access” — cables that run directly from exchange servers to its own. Redline’s server was co-located with that of BATS Exchange so that the “latency” on information and orders coming from BATS was cut down to barely one thousandth of a second. As a result, some of the quotes on public feeds such as the crucial “national best bid and offer” feed were a few milliseconds behind those Hendershott could see on his direct link with the exchanges. With a half-decent trading algorithm, Hendershott would have had ample time to buy Apple at a stale price with a guarantee that he could sell at a profit. Every couple of seconds. All day. Risk on the trades: zero. [ link to finance.fortune.cnn.com] |
