All About High-Frequency Trading

by Michael Durbin

Overview

A DETAILED PRIMER ON TODAY'S MOST SOPHISTICATEDAND CONTROVERSIAL TRADING TECHNIQUE

Unfair . . . brilliant . . . illegal . . . inevitable. High-frequency trading has been described in many different ways, but one thing is for sure—it has transformed investing as we know it.

All About High-Frequency Trading examines the practice of deploying advanced computer algorithms to read and interpret market activity, make trades, and pull in huge profi ts—all within milliseconds. Whatever your level of investing expertise, you'll gain valuable insightfrom All About High-Frequency Trading's sober, objective explanations of:

• The markets in which high-frequency traders operate
• How high-frequency traders profi t from mispriced securities
• Statistical and algorithmic strategies used by high-frequency traders
• Technology and techniques for building a high-frequency trading system
• The ongoing debate over the benefi ts, risks, and ever-evolving future of high-frequency trading

Product Details

ISBN-13:	9780071743440
Publisher:	McGraw Hill LLC
Publication date:	07/26/2010
Series:	All About Series
Edition description:	List
Pages:	240
Product dimensions:	6.00(w) x 8.90(h) x 0.60(d)

About the Author

Michael Durbin is an author and financial technology consultant specializing in the high-frequency trading of derivatives. He has taught at Duke University's Fuqua School of Business and the University of North Carolina's Kenan-Flagler Business School. Durbinlives near Washington, DC.

Table of Contents

Preface v

Acknowledgments xiii

Chapter 1 Busted 1

Chapter 2 Trading 101 9

Chapter 3 Trading Strategies 43

Chapter 4 Achieving Speed 95

Chapter 5 Under the Hood 131

Chapter 6 The High-Frequency Trading Debate 173

Now What? 195

Glossary 197

Bibliography 215

Index 219