What A High Frequency Trader Admitted About His Job | Exploring Markets

What A High Frequency Trader Admitted About His Job

If you do not understand how high frequency trading works, just sit back and watch this quick interview. CNNMoney talked with a former high frequency trader and he explains how high frequency trading works and what roles it now plays in the market.

Some examples that everyone should know about are "quote stuffing" and "co-movement." One interesting analogy is the comparison of Quote Stuffing to a Denial of Service Attack (hackers will understand this immediately). It's a new world of investing and trading. Before you buy or sell any stock, you should at least know how the system currently works: