Analysis Of Flash Boys

721 Words2 Pages
bulb-icon

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

Show More
Related

  • Jordan Belfort Research Paper

    562 Words  | 2 Pages

    In conclusion, Jordon Belfort has had a major influence on today’s world. Belfort changed the way that people today see Wall Street and the world of stockbrokers. He lived at the top of the food chain but fell back to being “pond scum” (“The Wolf”). He even proved to all that a successful life isn't always the most perfect. Belfort served his time and is even a motivational speaker now. Now, Belfort is an example of how drastically one’s life can change within minutes, days, months, or

    Read More

  • Liars Poker by Michael Lewis

    736 Words  | 2 Pages

    The novel Liars Poker by Michael Lewis is very interesting firsthand account of an inside look into the investment banking world, in particular bond trading at the firm Solomon Brothers in the 1980s. Lewis took an interesting and roundabout way to end up on Wall Street, studying art history at Yale and bombing his interview with Lehman Brothers but he eventually found himself at Solomon Brothers through a lucky encounter with two managing directors wives. Through his book Michael Lewis conveys the inner workings of investment banks in the 1980s to the average person using his own experience at Solomon Brothers. The book goes into Lewis’s own rise in the firm as well as the rise and fall of the entire Solomon Brothers Mortgage department.

    Read More

  • Flanking in a Price War

    1677 Words  | 4 Pages

    When the price war finally came, Steinberg used an unusual tactic in lieu of slashing prices. It offered a rebate for every dollar spent that could be applied to the customer's next order in the store. This was accompanied by a new focus on customer service that required several hundred new employees. Two of the other major firms followed suit immediately, in a competitive reaction, while Hudon and Deaudelin implemented the price cutting measures that were proven by the pricing experiment. These new prices were enforced with a strong advertising campaign. This tactic not only offered the smallest reduction of margin among the competitors, but Hudon and Deaudelin was actually the only firm to gain market share from the 14 week price war. These results were a vindication for economists and proved the value of economic theory in business

    Read More

  • Stud Trading versus Dud Trading

    961 Words  | 2 Pages

    When you buy expensive carpentry tools at your local hardware store, you still need the correct plans to build that elegant home. It takes more that just having the right tools to build your dream house. The same applies to trading.

    Read More

  • Analysis Of The 6th Street Boys

    2003 Words  | 5 Pages

    The 6th Street Boys were the gang that Goffman spent six years in Philadelphia with, and who she wrote her book about. While Goffman mainly focuses on a handful of the 6th Street Boys, one could assume that the gang consisted of almost every young male who lived on, or near the block. Everyone who she encountered during her time living in this neighborhood was an African- American, and this includes the young men who were in the gang. This being said, however, the gang lets Goffman become a “member” and even give her a nickname. This leads us to believe that the 6th Street Boys allowed women who lived on the block, and their girlfriends who may not have lived on the block to join the gang as well, but not as on official 6th Street Boys member,

    Read More

  • Jordan Belfort: The Wolf of Wall Street

    1357 Words  | 3 Pages

    Furthermore, he engaged the customer with an optimistic attitude and stated how the stock could affect him or her in the best way possible. Jordan could immediately hook any client into believing what he had to offer by providing the customer with the success stories others have had under his instruction.... ... middle of paper ... ... Works Cited Belfort, Jordan. The Wolf of Wall Street.

    Read More

  • Bitcoins Essay

    1371 Words  | 3 Pages

    This paper is about the rise and fall of Mt. Gox, the first and largest Bitcoin exchange service, very similar to a stock exchange. Mt. Gox was based in Japan. It was launched in 2010, by 2013 it was processing 70% of all Bitcoin transactions globally, but in February of 2014, the company realized it had no Bitcoins left in its “vault”. The company had literally lost billions of dollars in Bit...

    Read More

  • High Frequency Trading

    1480 Words  | 3 Pages

    High frequency trading is a form of automated trading that uses super computers to transact or process mega transaction orders at super fast speed, which are mostly measured in microsecond or milliseconds. ( Investopedia, n.d) with the aim to identify and arbitrage temporary market inefficiencies that are created by the competing interests of market participants (Aldridge,2013)

    Read More

  • Business Strategy: The Fundamental Analysis Of Samsung Business

    1048 Words  | 3 Pages

    The act of selling as soon as the trade becomes profitable, even if it is only a mere profit. Therefore, traders will buy multiple shares from different companies and sell immediately even if it is a few cents higher, because many small profits will eventually turn out to large profit gains. However, traders must have a strict selling strategy, meaning not selling the stocks, trusting that it will go up even more, thus, making the whole strategy in vain.

    Read More

  • Analysis Of Wonder Boy

    1229 Words  | 3 Pages

    A famous magician suffering from a head injury tries to convince his skeptical daughter that he came from another world, that he can fly, and that he must now return to his planet before the government finds him.

    Read More

  • Wall Street

    1892 Words  | 4 Pages

    To many a metaphor for a semi-real place where fortunes are made and lost, Wall Street is actually a very real place with a very rich history. Among investors, “Wall Street” refers to the collective set of financial institutions in New York City including stock exchanges, banks, brokerages, commodity markets, money markets, hedge funds, etc.[1] These institutions buy and sell securities in capital markets. Securities are contracts, to borrow money or fund a company for a stake in its ownership for example, that can be traded at a price. Capital markets are the markets, like stock exchanges, where these securities are traded. Generally, companies need money to produce what they sell and investors have this money. Securities are instruments which get this money from investors to companies efficiently.[2]

    Read More

  • The Wolf Of Wall Street Movie Analysis Essay

    1301 Words  | 3 Pages

    This movie starts off as Jordan Belfort, the main character in the movie, losing his job as a stockbroker in Wall Street. After losing his job, he goes and gets a job in a Long Island brokerage room. In the brokerage room, he sells penny stocks. Thanks to him being aggressive in his selling skills, he was able to make a profit. With the new income, he gives his wife a bracelet and she asked him why doesn’t he go after the people that can afford to lose money, not the middle-class people or lower income people. That is when he gets the idea to get a lot of young people and train them to become the best stock brokers.

    Read More

  • The Stock Market

    879 Words  | 2 Pages

    The biggest stock exchanges are the New York Stock Exchange and NASDAQ. The New York Stock Exchange is a large building in Lower Manhattan that does auction-style trading with a lot of face to face interaction through specialists, brokers, and buyers. There are upper floors in this exchange on which specialists determine the prices of all the stocks. This information then travels to the brokers who work auctions face to face with buyers in order to sell the stocks. America’s biggest companies, like Coca-Cola and McDonald’s, sell their stocks through this exchange. NASDAQ is a virtual stock exchange with no physical building. This exchange was created during the 1970s but began thriving during the tech boom of the 1990s. The tech boom helped this exchange become the home of more technological companies li...

    Read More

  • The Importance Of The Stock Market

    2323 Words  | 5 Pages

    Have you ever invested in the stock market? If so, do you know where your money is really going? The stock market is a risky business and it can make or break people’s lives. The stock market is used daily to keep America on its trembling feet; it’s also being used at this very moment to cheat people out of money for personal gain. This happens every day in the stock market and its evolving rapidly, super computers that can trade faster than a blink of an eye, social media trends that can predict share values, and intricate stock market schemes that are getting harder and harder to find and take down.

    Read More

  • The Road Ahead By Bill Gates

    1006 Words  | 3 Pages

    Bill Gates begins by explaining how computers will be interconnected globally in what will be called the information superhighway. Of course the precursor to this network is the currently used Internet. The development and use of this interactive network is the main focus of the book. Gates uses the metaphor of the 'ultimate market'; to describe how all manner of human activity will take place in this market, with the medium of exchange being digital information of all kinds. Bill Gates states that the ability to change and manipulate information and the increasing speed at which is it handled places us at the beginning of an 'information revolution.'; Since almost all information in the future will be digital, conventional communication devices will be altered. As soon as the cost of communication drops and it is combined with other technological advances, Bill Gates predicts that the results of this interactive information will be like the effects of electricity. He also predicts that the house of the future will have one wire running into and out of it that will carry television, phone, or news information that will be sent to the appropriate device.

    Read More

More about Analysis Of Flash Boys

Open Document