HFT Strategies Many HFT strategies are quite simple.
{"Image DocumentName": "HFT Strategies Many HFT strategies are quite simple.", "Image ImageDescription": "Many HFT desks are largely replacing the more traditional dealers as market makers by relying on simple passive market-making, placing quotations in large quantities. Here, the HFT strategy seeks to profit through a simple high volume based on having its own bids and offers taken. Many firms are quotations to seek liquidity rebates by providing liquidity to markets. Other HFT desks seek profits through cross-asset or cross-market arbitrage strategies or by accessing information or executing trades more quickly than their competition. Co-location, the most rapid data feeds and trade execution abilities are crucial here. HFT desks often seek to anticipate order flow (including sniffing out competing algorithms. Order anticipators are referred to as parasitic traders in that they use traders information without contributing to price discovery or enhancing liquidity. Finally, even though most HFT s seek to hedge or neutralize their positions (be flat by the end of the trading day), some do seek profits through speculation or by making other directional trades.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}