Earns in Seconds Through Stock Market

    High frequency trading

•  High-frequency trading involves buying and selling securities such as stocks at extremely high speeds. Traders may hold the shares they buy for only a fraction of a second before selling them again.

•  High-frequency trading, also known as HFT, is a method of trading that uses powerful computer programs to transact a large number of orders in fractions of a second.

•  The traders with the fastest execution speeds are more profitable than traders with slower execution speeds.

•  Some of the best-known high-frequency trading firms include Tower Research, Citadel LLC and Virtu Financial.

•  HFT is controversial and has been met with some harsh criticism. It has replaced a number of broker-dealers and uses mathematical models and algorithms to make decisions, taking human decision and interaction out of the equation. Decisions happen in milliseconds, and this could result in big market moves without reason. As an example, on May 6, 2010, the Dow Jones Industrial Average (DJIA) suffered its largest intraday point drop ever, declining 1,000 points and dropping 10% in just 20 minutes before rising again. A government investigation blamed a massive order that triggered a sell-off for the crash.

      How hft works 

Suppose you expected the price of a stock to rise by a penny for two seconds and then drop back down -- the kind of wobble that occurs countless times each day on financial markets. Now suppose you were able to buy 1 million shares a split second before the rise and then sell them a split second afterward. You'd make $10,000 in two seconds. That, in a nutshell, is how high-frequency trading works.

Disadvantage of hft

•  HFT is controversial and has been met with some harsh criticism. It has replaced a number of broker-dealers and uses mathematical models and algorithms to make decisions, taking human decision and interaction out of the equation. Decisions happen in milliseconds, and this could result in big market moves without reason. As an example, on May 6, 2010, the Dow Jones Industrial Average (DJIA) suffered its largest intraday point drop ever, declining 1,000 points and dropping 10% in just 20 minutes before rising again. A government investigation blamed a massive order that triggered a sell-off for the crash.