Flash Boys Setting & Symbolism

Michael Lewis
This Study Guide consists of approximately 38 pages of chapter summaries, quotes, character analysis, themes, and more - everything you need to sharpen your knowledge of Flash Boys.
This section contains 1,209 words
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High Frequency Trading (HFT)

High Frequency Trading (HFT) is the practice of intercepting a stock market trade and manipulating the share price to make a profit before an investor can react. Lewis uses the fictitious “Scalpers Inc.” to illustrate the phenomenon. Every time an investor wants to buy 1,000 shares from company X, Scalpers Inc. is immediately informed and buys 1,000 shares. Without taking the risk of owning the stock, Scalpers Inc. sells the 1,000 shares to the initially interested investor at a higher price. HFT preys on the slow speed of investors. If trades are conducted in multiple exchanges for a given stock, high-frequency traders pick up the faster signals and manipulate the slower ones. HFT is also the reason Wall Street companies scramble to find the latest equipment and fastest routes to stock exchanges. Value is measured in microseconds. A computer algorithm reacts, not a human. Even though HFT...

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This section contains 1,209 words
(approx. 4 pages at 400 words per page)
Buy the Flash Boys Study Guide
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Flash Boys from BookRags. (c)2016 BookRags, Inc. All rights reserved.
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