Investing High-Frequency Trading


  • Facebook: Feeling the Pain

    Mark Zuckerberg may have lost a couple of billion today with Facebook's decline, but he's got billions more. Discussing whether investors in the stock should expect a rough week ahead, with Nathan Bachrach, The Financial Network CEO; and CNBC's Bob Pisani and Kayla Tausche.

  • Facebook's Impact on the Nasdaq

    Discussing the electronic trading systems behind the drama at the open of Facebook's listing on the Nasdaq and what could restore investor confidence, with Roger McNamee, Elevation Partners and Roelof Botha, Sequoia Capital.

  • The Dangers of High-Speed Trading

    CNBC's Eamon Javers reports on new data that shows controversial high-frequency trading may be more dangerous than investors originally thought.

  • NYSE trader

    It’s one of the biggest mysteries on Wall Street. How can stocks be in their fourth year of a bull market and trading activity be so low?

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    It was a bad day to be BATS. Its trading platform experienced a blunder on Apple—the highest-profile company in the world—and forced BAT to withdraw its IPO on the stock's first day of trading.

  • Is Rapid-Fire Trading Rigged?

    Do rapid-fire trading firms have an unfair advantage over the retail investor? Joe Saluzzi, Themis Trading co-head of equity trading, explains why he thinks the current trading system is broken.

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    Why have the financial markets recently rallied so sharply in places such as America? If you ask a trader, they will cite “rational” explanations, such as US bank stress tests, an improved US economic outlook, and decline in euro zone concerns. But if you ask John Coates, formerly a senior trader at Deutsche Bank and Goldman Sachs, there may be another factor at work: hormones, the Financial Times reports.

  • Traders work on the floor of the London Metal Exchange in London, U.K., on Friday, Aug. 5, 2011. Stocks dropped for an eighth day, the longest losing streak since January 2010, and commodities declined on concern the U.S. recovery is faltering. Photographer: Chris Ratcliffe/Bloomberg via Getty Images

    Computers and Bloomberg terminals dominate trading floors, but the human element remains a crucial feature of transacting across derivatives and other parts of the global financial system, the Financial Times reports.

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    Social media websites like Twitter and Facebook have become increasingly important to high frequency traders looking to anticipate market moves before they happen, but could they eventually become as significant as traditional business news providers in the world of high speed trading?

  • Ken Langone on Corzine Resignation

    "It was the right thing to do, given he was the architect, according to what the papers are saying," says Kenneth Langone, Invemed Associates chairman/president; with Ron Baron, Baron Capital. They both weigh in on what MF Global's investigation says about the regulatory environment.

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    Summit hopes give risk-on currencies a lift, and there's a prize for a euro exit plan - time for your FX Fix.

  • UBS Rogue Trader

    "We need to fundamentally change the DNA of the banking system. Something like risk management needs to be rethought completely," Don Tapscott, author of Wikinomics & chairman of nGenera Insight think tank, told CNBC.

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    Stock trading performed almost entirely by computers is on the rise, provoking some weighty questions when it comes to markets: Will investing in shares become like chess, where only the very best humans can beat machines? Or is a human touch always superior to cold calculation?

  • NYSE trader

    Day after day, stocks swing sharply by hundreds of points.  All of this anxiety has caused experts to ask whether there are new forces at work in the stock market that make trading permanently more erratic, the New York Times reports.

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    Contrary to popular belief, high frequency trading reduces volatility in stock markets rather than exacerbates it, according to new research by Professor Alex Frino at the University of Sydney Business School and CEO of Capital Markets Co-operative Research Centre.

  • A concerned trader on the floor of the New York Stock Exchange.

    High speed computer trading by funds with holding periods of milliseconds are to blame for rising volatility, the disappearance of diversification and the death of individual stock picking, said an increasing number of traders and market strategists.

  • The Uptick Effect

    A look at the role high frequency trading and the abolition of the uptick rule has played in market volatility, with Dick Grasso, former NYSE CEO.

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    "These high frequency traders begin the day owning nothing and they end the day owning nothing in terms of common stocks. But during the day they're accounting for between 50 and 65 percent of the volume," said Schwartz.

  • The markets have become "highly, highly influenced" by program trading, Dick Grasso told CNBC Thursday.

  • But not to worry. Here's where he recommends investing now.