Analysis Of Flash Boys

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Recommended: The effedt of high frequency trading system in financial market

Flash Boys, by Michael Lewis, begins in a financial world that has been rehabilitated. Flash boys was really a great experience for me this term as Lewis pens down his thoughts and ideas on the highly lucrative and ethically untrustworthy business of high frequency trading. The new stock market, however, has replaced the human element with technological ability As per my research on Flash Boys it was interesting to find one to enlighten us with exposure on HFT. Getting ahead with HFT .It is a firms widely spread network which was secretly laid for about an 827-mile fiber optic cable connecting Chicago and Northern New Jersey in the straightest line possible. The workers, who were told to keep quiet and avoid asking questions of their employer, Discovered that nearly all his trades had a predictable or wanted results. He lost money when he should have gained. Before he could blink, shares which would have likely profited traded far worse than the original market price. Brad wondered if his computer was damaged. After trial and error, he discovered that it was not a technological glitch at all. I was the new concept of high frequency trading. High frequency trading which involves the use of advanced computers with complex algorithms, allows companies to use information that comes microseconds before others get it, and make trades that end up costing investors tens of billions of dollars, according to Lewis. Characters such as Dan Spivey supervise the construction of these aforementioned lines that cut through cities and rugged terrain in order to achieve the shortest distance between two financial markets. High frequency traders co-locate within the exchanges and collect information about trades before everyone else. For example, if an investor wants to buy a share of X at $10, a high frequency trader will buy the share for that amount and sell to the investor at $12 before the investor even notices the He made sure with all his tech team in place that all the orders reached at the same time so that they got the price they saw the second before they pushed that button .He also initiated to build a new system that removes HFT from the marketplace Lewis shines into the darkest corners of the financial world - But in the end, I would like to conclude that Flash Boys is an uplifting story. It is also true to say that Lewis’s flash boy’s focuses public attention to the system, which has helped people to understand the real trade environment within stock

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