Algorithmic Trading And High Frequency Trading Changing The Face Of Broking Industry: A Case Study

Abstract

Automation and financial deregulation have changed the way of doing transaction in financial markets. It have made system more transparent and cost effective. When a person’s start new business he analyze the competitive advantage for future growth and survival. For the person in securities market this competitive advantage can be good trading strategies, latest technologies, infrastructure, research and risk management tools. Algorithmic trading is one of the tool of competitive advantage for the person in securities market. Set of instruction are placed automatically in trading decisions in algorithm trade. HFT is a sub set of automated trading in which opportunities are used to take advantage of small timescale from nanoseconds up to milliseconds. Both are changing the landscape of broking industry and future necessity for survival in markets. After both these changes in the industry as a stakeholders, I thought how technologies have changed the way of doing business and the participants had to understand the changing dynamics to survive in the sector.