blog




  • Essay / Analysis Of Flash Boys - 721

    Flash Boys, by Michael Lewis, begins in a rehabilitated financial world. Flash Boys has really been a great experience for me this quarter, as Lewis writes his thoughts and ideas on the highly lucrative and ethically unreliable industry of high frequency trading. The new stock market, however, has replaced the human element with technological capability. Based on my research on Flash Boys, it was interesting to find one that shed some light on HFT exposure. Moving forward with HFT. This is a widely used network in the company that was secretly laid for an approximately 827-mile fiber optic cable connecting Chicago and northern New Jersey in the straightest possible line. The workers, who were told to keep quiet and avoid asking questions of their employer, discovered that almost all of his jobs had predictable or desired outcomes. He lost money when he should have made money. Before he could blink, stocks that likely would have benefited were trading far lower than the initial market price. Brad wondered if his computer was damaged. After trial and error, he discovered that it wasn't a technology problem at all. I was the new concept in high frequency trading. High-frequency trading, which involves the use of advanced computers with complex algorithms, allows firms to use information that arrives microseconds before others obtain it and make trades that ultimately costing investors tens of billions of dollars, according to Lewis. Figures such as Dan Spivey oversee the construction of these aforementioned lines that pass through cities and rugged terrain in order to achieve the shortest distance between two financial markets. High-frequency traders locate themselves within exchanges and collect trading information before anyone else. For example, if an investor wants to buy a stock of X at $10, a high frequency trader will buy the stock for that amount and sell it to the investor at $12 before the investor even notices. He made sure with his entire technical team in place that all orders were hit at the same time, so they got the price they saw the second before they pressed that button. He also initiated the construction of a new system that removes HFT from the market. Lewis shines in 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' flash boy brings public attention to the system, which has helped people understand the real trading environment within stocks.