Where does the money earned from high-frequency trading come from ? In layman's terms, on a bus, people keep getting on and offHigh-frequency trading is the ticket collector who is always on the bus. Once there is no one on the bus, the ticket collector can no longer make money.
In a sense, the shorter the transaction, the better the high-frequency trading, because in a very short period of time, the profit and loss of a very short transaction can be well controlled. In fact, the comparison is speed, which is a game The main battlefield; every transaction may have double-digit or even single-digit positive returns, but this is the true value of high-frequency trading.
There are many ways to obtain profits in high-frequency trading, the simplest is cross-exchange risk-free hedging arbitrage. The cross-exchange arbitrage of gold and silver products of the Shanghai Gold Exchange and the Shanghai Futures Exchange; and the nickel arbitrage of the Wuxi Stainless Steel Exchange and the Shanghai Futures Exchange are all cross-exchange arbitrage of the same product. The vast majority of this arbitrage profit comes from the price difference between exchanges .
High-frequency trading is not a new thing, it has always existed in the trading market, such as futures and cash arbitrage, ETF arbitrage, foreign currency market, etc., but why has it received much attention in recent years? There are mainly the following aspects:
One is the stability of high-frequency trading and considerable profits;
The second is that the trading volume of high-frequency trading is very large, and brokers are especially fond of it. Even if they can’t make money, the fee rebate is still very considerable;
Third, high-frequency trading is a trend. Compared with manual calculations, computers are more reliable, accurate and fast . Yiwangxing contract hedging is a relatively professional high-frequency trading strategy, with a stable monthly income of about 5-10%.