How’s the current market HFT has been around for decades, and it is used by many hedge funds and other financial institutions. It was made possible because of new technologies such as faster computers, faster networks, and smarter algorithms. The high-frequency trading industry has been criticized for its lack of transparency, as well as…

Hedge funds are investment companies that use a variety of trading strategies to make profits in the markets. The trading strategies include long-short equity, fixed income arbitrage, and global macro. The trading strategies of hedge funds have been changing over the past few years. High-frequency trading (HFT) has become a…

Regardless of how fast a transaction occurs, there will always be some delay due to the number and types of devices between the parties. The time required to send data over long distances and through networking devices like routers and switches leads to delays in data centers, wide areas, and…

In the first part, I explained basic concepts of architecting a low latency trading system and some examples of how to implement a very fast order book. In this second part, I will explain how to implement the next components and the key part: what pattern to use. 3. Order…

In this article, I would like to talk about how to implement a low latency system, modules needed and its system architecture and be focused on the software development side. There are other parts that need to be covered in order to have a complete system, and they might be…

FX Market microstructure In order to understand FX aggregators, we need to understand how the forex market is structured. Unlike in markets like equities or futures, there is no centralized exchange, hence there are no “unique” prices for the same asset. …

I get this question all the time, and it is a very, very hard question to answer. So, I decided to create a list to keep it at hand for the next time somebody has the same question. …

It is very well known how fragmented the FX market is. There are hundreds of dealing banks, ECNs, non-banks, all of them providing liquidity. Each of them providing unique prices at different tiers, in de-centralized architecture. All these different venues provide access to their feeds, using APIs, and in most…

What factors affect the speed of an automated trading system? Here is a list of the 10 things that affect the speed of a real-time automated trading system, in no particular order. 1. Programming language and efficiency of the code: The programming language and compiler used to implement an automated…