This is the usage of speed computers that are strong by distributing countless orders in turbo speed making millions of dollars in 27, to perform trades. In the floor of the stock exchange, stock trading has been a company, buyers and sellers come together on Wall street, return and fort until that they reach a deal. Where approved to open the market with a laptop computer or personal computer to own trade from the comfort of their office or home electronic commissions. Fast forward to today, stock trading became so high technology that speed determines who wins or even loses.
The computers on Wall Street are so quickly that pc’s can’t deal with them. The question is can the stock dealer take benefit of those pc and how does his work does and earn money executing frequency trading? Assuming that you are interested in a stock and that you opt to purchase a chunk. In order to not draw attention and cause the stock price to increase, that you break your purchases down into perhaps 10 batches. As you along with dealers that are intrigued in purchasing that stock start issuing or placing orders, these frequency computers come in. What they do is they sort of compacted the order you placed, show your purchase requests or intentions to dealers who’ve access to these exceptionally fast computers quickly in 3 milliseconds or 0.03 seconds. Since these traders involved with high frequency trading already know exactly what you’re going to purchase and your order has been initiated, that they buy up the stocks and by the time your order gets there that they have the inventory plus they simply turn around and sell the stocks to that you earning a profit. Remember all this occurs within fractions of a second.