Eebit Algorithms

High-frequency trading (HFT) is the use of sophisticated technological tools and computer algorithms to trade securities on a rapid basis. HFT usually uses proprietary trading strategies that are carried out by computers. Unlike regular investing, an investment position in HFT may be held for only seconds, or fractions of a second (though sometimes it may extend to longer), with the computer trading in and out of positions thousands or tens of thousands of times a day. At the end of a day of HFT, there is no open position in the market. Firms engaged in HFT rely heavily on the processing speed of their trades, and on their access to the market. As of 2009, studies suggested HFT firms accounted for 60-73% of all US equity trading volume, with that number falling to approximately 50% in 2012. On August 1, 2012 Knight Capital's trading activities caused a major disruption in the prices of 148 companies listed at the New York Stock Exchange, thus, for example, shares of Wizzard Software Corporation went from $3.50 to $14.76. Knight Capital took a pre-tax loss of $440m sending shares lower by over 70% from before the announcement. The nature of the Knight Capital's unusual trading activity was described as a "technology breakdown" Eebit Algorithms secures High-Frequency Trading.