Processing .....please wait.. 
The article has been forwarded.... 
Financial Trading, Now at the Speed of Light
By siliconindia
|
Wednesday, 09 November 2011, 01:15 IST
Bangalore: The days of traders running, shouting and elbowing each other on an open trade floor is long gone now and the world of virtual stock trading is in. With people being more knowledgeable about the gambling world of stock market and the technology of transacting, the rate at which transactions are made is at the speed of light. It is the era of High frequency trading. It is the era of zero latency. Sounds jeebrish? Here what it is all about.
Typically, a high-frequency trading is computer systems buys and sells financial instruments while holding on to them for perhaps just fractions of a second, a competitive edge as small as a few tens of microseconds. Algorithmic trading or algo trading is the use of computer programs and software to execute trades based on predefined criteria and without any human intervention.
The concept of high frequency trading came into spotlight only two years ago when Goldman Sachs sued one of their former employees for stealing code that was used in one of their programs used to execute this type of trade.
