Monday, October 29, 2012

THE FIRST WORD


banging the beehive
One reason for the irregular activity is a strategy known as "banging the beehive," in which high-speed traders send a flood of orders in an effort to trigger huge price swings just before the data hit.

This is an example of "momentum ignition" in high-frequency trading, where an algorithm initiates a series of trades to try to influence other algorithms.

No comments:

Post a Comment