High-frequency trading, harmless cash dispenser or accelerant? Stephan all Feldhoff, head of the Institute for fractal market analysis, was here in the chili assets news already in issue 05/2011 focuses on the dangers of high-frequency trading and warned in particular against its manipulative possibilities. At the time, this warning is little seriously and dismissed the high frequency trading as a marginal phenomenon. In the current market environment, which is determined by very high volatility and price movements, which no longer can be explained by a bad news situation, the question of the influence of high-frequency trading however very strongly… Meanwhile, it is known that high frequency trading systems have a far wider audience than this has been previously suggested by many market participants. The financial times Germany estimates the proportion of the total volume of trade in New York at approximately 70%. On the German Stock Exchange, the share should be already 40%.
And the foreign-exchange market to global to 45% of the High frequency trading be established. A such a big market power, that the markets without a doubt can anyone imagine, can affect very much. Stephan all Feldhoff intensively dealing with the swarm behaviour of market participants, due to his research assumes that a previous minority of 5-10 is already sufficient %, to trigger massive buying or selling behavior in the majority of the market participants. Of high frequency trading on the liquid stock markets of the world has long exceeded this percentage of the market. Accordingly, the Institute for fractal analysis estimates the influence of high frequency trading on price changes as ‘ extremely precarious a. The effort, which operate banks for high-frequency trading appears questionable. For an additional fee they get faster the details of buy and sell orders a few milliseconds by some exchanges. You can use this information to their advantage. However only fully automatically.