High-Frequency Traders Descend onto Forex Markets | Currency Futures

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High-Frequency Traders Descend onto Forex Markets

  #22 (permalink)

Posts: 1,176 since Nov 2009

Dennis H View Post
Okay, please educate me. I'm a noob here (although hardly a noob to trading) and I'm always eager to learn new things.

PS, I have a friend who's doing HFT forex but I'm only making a WAG about how he does it. For obvious reasons, he won't say much other than the $5M/bank thing.

I am no-one to educate you... as I am always learning myself..... but I can tell you that you are mistaken on your knowledge from my own first hand knowledge from my workplace.. will leave it at that...

if your friend is really doing HFT on FX... then ask him to provide you with a high level understanding.. he doesnt have to in that way explain any of his strategies but rather simple things... and $5M is notwhere near enough to trade at a cost effective level..

also, there is no such thing as colocating for FX.. you can aggregate all the feeds from the major networks and have a decent view of liquidity and things like that.. and reduce your latency by being closer to the networks you are aggregating... but the moment you try to arb, the opportunities are usually gone as they dont last all that long... how long? I have no idea.. there are tons of institutions that focus on FX... it is merely just getting more notice now, but it is something that has been done for decades...

I dont do HFT on FX, or HFT at all in the true sense of the word.. I only do swing on FX as I dont have the capital or funding required to deploy the overall tech and subscribe to all the networks.. and please note that I dont mean FXCM or MBT or anyone else like that...

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