Steve Kroft gets a rare look inside the secretive world "high-frequency trading," a controversial technique the SEC is scrutinizing in which computers can make thousands of stock trades in less than a second.
Пікірлер: 363
@janejane3862 ай бұрын
I HAVE INCURRED SO MUCH LOSSES TO TRADE ON MY OWN,I TRADE WELL ON DEMO BUT I THINK THE REAL MARKET IS MANIPULATED.
@Zubaida.Ali.Ali53272 ай бұрын
I always advice new members to have an orientation on how it works before getting involved. Trade offers more benefits than just holding.
@Zubaida.Ali.Ali53272 ай бұрын
Kate Floretta in stagram
@Zubaida.Ali.Ali53272 ай бұрын
Kate Floretta Face book
@Zubaida.Ali.Ali53272 ай бұрын
Google "katefxfloretta" anywhere take classes and learn to trade.
@Godwin_blessing_felix2 ай бұрын
having a mentor is also very important when it comes to Trade, with out that, it can be very frustrating.
@guinness1987x3 жыл бұрын
How cute. They thought computers would influence the market. Little did they know Jpow's money printing machine and wallstreetbets would be the great influencers
@knockhello26043 жыл бұрын
LOL
@noahpatience42573 жыл бұрын
Trading as a beginner was very difficult due to lack on trading experience, this resulted in losing my funds though I've been able to recover all that I lost, all thanks to Mr Charles_forex09 at Instagram , i never knew good trader still existed till I come in touch with him.
@user-pf8wu1eu6h3 жыл бұрын
Ш77й99%ыяц
@benji456453 жыл бұрын
wait you're early
@henrytep88843 жыл бұрын
@@benji45645 from the future.
@Golu41195 Жыл бұрын
In mid 2011 HFT was a secretive world limited to the top traders of the Wall Street. 11 years later, today, me, a boy from a small town in India is doing Ph.D. on HFT, after having already done masters in 2020. Things change so fast.
@planwithsumit Жыл бұрын
What are your sources?
@Aryan0 Жыл бұрын
Hey bro can you guide me in this field
@Vainzyy8 ай бұрын
you made no sense, what does HFT back in 2011 have to do with ur stupid masters in 2020?
@abdelhammami90033 жыл бұрын
Coincidentally, transparency and fairness are 2 words that aren't a wall street dictionary .
@CostaMichailidis6 жыл бұрын
How come this looks like it was made in 1982?
@florianthomas78525 жыл бұрын
American suit style never has changed from the potato sag design of 1982.
@csmith62785 жыл бұрын
Costa Michailidis hahaha
@kauigirl8085 жыл бұрын
Maybe it is that old.
@eriktruchinskas37475 жыл бұрын
@@florianthomas7852 it looks better than todays "two sizes too small" looking suits that are trendy right now
@hbmcgregor4 жыл бұрын
@@kauigirl808 your kidding right ?
@Forward8005 жыл бұрын
computers making billions in a blink of a eye, me have to wait 7 hours for $100 to go my way. Im catching up :) LOL
@thandosisilana4253 жыл бұрын
Don't buy into it to date Warren Buffet is still the king who hasn't been beaten by no computer.
@shayhan62273 жыл бұрын
Why do people keep pulling the word billion our of thin air lol. These high frequency computers only make pennies every second.
@AntoRossi6143 жыл бұрын
@@thandosisilana425 dude what are you talking about. He is a businessman/investor not a trader per se. The number of transactions he makes are way less than the ones made by the computers. He simply has the advantage of capital. If you took all his money away then he will probably not be able to pull it off again.on the contrary the computers will do it again and again for eternity.
@NavdeepVarshney-ep4ck15 күн бұрын
@@thandosisilana425read about jim simmons
@Nvrbeenspoon6 жыл бұрын
"robot computers" takin our jerbs
@BANNEDFundedTrader6 жыл бұрын
Dey tuk er jabs
@rushiljohar42066 жыл бұрын
Donald Trump Jr will deport Mexican robots!
@harrisomeyer30696 жыл бұрын
don’t forget “math wizards”
@Wulfcry5 жыл бұрын
Dey tuk er jabs.
@syedmdismail74785 жыл бұрын
Yes and we need to fight against these new terminators 😆😆
@juliezaremskiy36353 жыл бұрын
Meanwhile it takes 3-10 business days to transfer $20 from one bank to another.
@LeafInTheWind882 жыл бұрын
Lol
@Nebbia_affaraccimiei Жыл бұрын
that's because they keep and gamble everyone's money in the mean time.
@MJ-uk6lu Жыл бұрын
The delay is enforced by law
@igorschmidlapp6987 Жыл бұрын
@@Nebbia_affaraccimiei It's called "the float"...
@ke0kie Жыл бұрын
I installed low-latency networks for HFTs and Investment banks from 2008-2011 in NYC and Chicago. This was a very interesting piece and quite interesting / bit of nostalgia for me. I've been in that NYSE data center several times, as well as NASDAQs in Carteret NJ several times a week. Arista was the big dog for switch technology back then, I'm not sure if they're the leader in low-latency ASICs anymore though.
@jasonfang4879 Жыл бұрын
so you contributed to this evil
@rickyy7802 Жыл бұрын
Arista is still the dominant player in low latency switch as far as I am aware. Most HFT firms (if not all) still extensively purchase and use their products.
@ke0kie Жыл бұрын
@@rickyy7802 thx for sharing, that’s interesting they have held on to the market all this time.
@crayxt6 Жыл бұрын
I work at an HFT, and yeah they're still top dog. They acquired Metamako, who were doing great things with L1 ultra low-latency switches, which has helped them retain that edge.
@JBM7ALPHATV11 ай бұрын
I love this word :" without short term traders there is no liquidity".
@Gbekaxo6 ай бұрын
🤣🤣
@jonathancisneros71504 жыл бұрын
Imagine what a quantum computer can do in the future for Wall Street.
@levoyageur10023 жыл бұрын
Imagine if one is already doing for it in secret.
@jonathancisneros71503 жыл бұрын
Darshan Singh I wouldn’t doubt it.
@tchangangtchagang32863 жыл бұрын
You can't imagine how a quantum computer works
@JohnSnow-gi7iv3 жыл бұрын
nothing special
@tornadochaser72262 жыл бұрын
A quantum computer isn’t any faster than an ordinary one you dunce
@Mlogan115 жыл бұрын
This is just good old fashioned "frontrunning" in the modern era. A long term investor won't be affected by this. The new guys are basically taking over the role of "Market Maker" previously held by NYSE/NASDAQ. They make the market and profit off the difference between the bid and the ask, which the old market makers had been doing for decades before computer technology hit the scene. These guys aren't using any special analysis to determine extended market direction, only micro moves a few milliseconds into the future. This means human short term/day traders who are not trading by the micro second can still do quite well trading patterns created by resistance and support.
@quantumindicesfuturestrade6873 Жыл бұрын
Agreed. If you can switch your perspective you can get a great read on the price action watching the algos move. It's changed my trading significantly.
@erwin6436 жыл бұрын
Uh folks, this is old info. The S&P was about a third of what it is now.
@jamess67878 жыл бұрын
I'm convinced a futures exchange must also be selling client positions and data to these HFTs - some of the goings on are way to suspicious
@chrismackay92684 жыл бұрын
Definitely dude, I'm sure the big firms also use these HFTs as a way to obfuscate front running trades too.
@Chris-be3pi3 жыл бұрын
It took 4 years to get out in the open, but you’re correct. Robin Hood selling order flow to Citadel.
@jwkayk360 Жыл бұрын
Can we get a 2.0 of this? Id love an update
@quantumindicesfuturestrade6873 Жыл бұрын
It's the evolution of the market. I trade manually but I'm always watching the algos movie and frankly it's to an advantage
@diplodocus35 жыл бұрын
This video has a lot of weird faces
@BallsofRisk3 жыл бұрын
because we go down. sooner rather than later.
@josephhawk8213 жыл бұрын
The idea is to not look rich, but be rich.
@mohammedadil86983 жыл бұрын
No one is talking about that IT Indian dude who is minting money.
@Elburion7 жыл бұрын
We are lucky at least computers don't understand fundamentals yet. The one advantage humans have left.
@aistis5ive6956 жыл бұрын
I wouldnt be so sure of that....
@Fx2206 жыл бұрын
They don't have to, They can drive markets their way.
@Higgs000Boson6 жыл бұрын
they actually do already ;)
@masterbeethoven82096 жыл бұрын
They do already, it's called a Bloomberg terminal
@celyl6 жыл бұрын
of course fundamentals can be programmed. That's easy, wait until you see AI, technical and fundamentals analysis combined ...
@LivingChartz5 жыл бұрын
I'm not afraid of bots, in fact I really appreciate the liquidity they provide. Allows me to get in and out with ease. I kinda believe trading should be done by humans in any case. Price should reflect humans interest, activities, decisions and not base on some complex algorithms. This really does distort market valuation, at least in the short term.
@Asim.D9 ай бұрын
" without short term traders there is no liquidity".
@xpert7878 жыл бұрын
LOL , "complicated mathematical formulas called algorithms", talk about a tautology.
@click_gaming42776 жыл бұрын
Robert Moore . Great comment. I disagree slightly with it being a tautology, but I'm probably being pedantic. Can you explain your reasoning, I'm interested as I can't see it, although I believe you are right technically.
@frankienutz1236 жыл бұрын
This isn't tautology; he was just defining a word, not using it twice.
@masterbeethoven82096 жыл бұрын
A tautology would be "complicated mathematical formulas AND algorithms"
@TheAfroCorporation6 жыл бұрын
Redundant is the word you're looking for
@habibbialikafe3395 жыл бұрын
Stop using fancy words. It just makes more confusuon
@Shyamshm3 жыл бұрын
*10 years later Lol look at me.. trading with a mac mini and a 10" monitor! 😄😄
@deepintheheart67153 жыл бұрын
Wtf this was 9 years ago😢 imagine now!
@Jatin199024 жыл бұрын
Link to the full episode?
@sunshine_water51394 жыл бұрын
Ive always thought it was cool to see all those ppl yelling out buy or sell.
@dieguismama23308 жыл бұрын
Hey that's Jon Stewart's brother.
@americancivicsinstitute6253 Жыл бұрын
One day soon a trader will buy the security directly from the Company. And no exchange or go between will be needed or wanted. Cut out the middle man. All 10 of them.
@kings27276 жыл бұрын
Video might be old but happened again this year
@UltrMarine5 жыл бұрын
Exploiting correlation in stock and exchange in other words creating waves and collect dipping, selling the bulging. That simple.
@UltrMarine5 жыл бұрын
To be first you need to be quick
@alrachid26 жыл бұрын
If you guys think this is wild you should see what they are doing in the bitcoin/crypto markets with no regulation! Its insane!
@01pigoso6 жыл бұрын
Alrachid I trade on Bitmex and sometimes close a position with 20% positive ROI just to end up with a loss.The charges are huge.How on earth these companies are doing any profits on a 3 seconds trades?All the profits should be eaten by the broker's fees and commissions,no?
@dstbbdstbb37076 жыл бұрын
because of the high volume they get a lower price by broker
@cvekris81775 жыл бұрын
Alrachid, Would like to know in details, please explain
@louishibbs51336 жыл бұрын
Ahso, if i know the technical protocol of the machines can i make money as a trader?
@csmith62785 жыл бұрын
Pump and dumps
@Renould20105 жыл бұрын
I need a Super Computers 🖥.
@sansha26875 жыл бұрын
Average investers are disadvantaged and are simply no match for hft, it is like fight between changez khan vs a simple pregnant lady. And the judges are praising changez khan fighting skills at the same time encouraging pregnant lady to keep fighting.
@Chris-xc1vd5 жыл бұрын
Buying the downside dip can get you a higher amount of stocks. The stocks go up you make money. You can buy more than you could before at a lower price. So more money can be made...
@Chris-xc1vd5 жыл бұрын
@@MrSupernova111 predict eh....look at a screen and see that it has gone down absolutely.
@SeanWork5 жыл бұрын
Lol. What if HFT out paced money supply in the future?
@ScottAllenFinance2 жыл бұрын
5:38 how most retail investors feel in 2022
@louisverheem42535 жыл бұрын
Its stealing plain and simple! You buy a stock and they jump in front of you push the price up on your order. An example is: you order 100 stock units at a price, you only get 15 at your price and suddenly your price is slightly more, you then have to order more at the new price to complete your order of 100.
@johnc.56005 жыл бұрын
Louis Verheem Read: flash boys. This book explains HFT and how it started, same writer of THE BIG SHORT.
@HairySasquach6 жыл бұрын
'robot computers', 'supercomputers'... so computers?
@topherlions7144 жыл бұрын
an algorithm is simply a list of steps to get from point a to point b. to make a sandwhich which steps do you need to do? that list would be an algorithm. They're not necessarily complex
@topherlions7144 жыл бұрын
obviously stock trading ones are lol
@fredericbeigbeder91195 жыл бұрын
03:40 what about trading fees?
@RandommVideoShots5 жыл бұрын
They are brokers and have own licenses. They do not use robinhood
@mariovargas11138 ай бұрын
IM just imagining what they do on 2023, this was 12 years ago!!!
@thepunisher12726 жыл бұрын
Refreshing.. Better than governments for sure
@isoSw1fty3 жыл бұрын
And this was 9 years ago....
@rayakoth5 жыл бұрын
but it at least benefits the computer companies though? right? And every other tool needed to stay in the game.
@Wulfcry5 жыл бұрын
4:36 Listen to this that how it is.
@evansjackson44265 жыл бұрын
I am that small trader that's headed high, but I don't fear hft. They fear it because their leverages are high so a small negative movement would mean billions lost. What matters mist is your entry position, just when the hft has shown them it is a pull back position
@allforthewinner Жыл бұрын
eeeeeeeeeeeeeeeeeeh win big lose big big risk bigger margin teeeeeeeeeeeeeeeeeeeeeeeheeeeeeeeeeeeeeeeeeeeeeee!
@bluest15245 жыл бұрын
3:30 Narang has very shallow emotional affect. He seems incapable of feeling or empathy of any kind.
@esotericonetwork5 жыл бұрын
Math does not understand human emotions. Programmers just code
@ktolwal5 жыл бұрын
and whats the problem with that?
@erwin28693 жыл бұрын
@@ktolwal Nobody said there is a "problem"?
@rushiljohar42066 жыл бұрын
Sell in a minute..no risk of share falling/rising. Trend capturing for 1 cent. Not bad at all. In face I'm a fool for taking the harder path.
@JohnSnow-gi7iv3 жыл бұрын
HFT is just computers buying and selling at a high speed. thats it. it doesn't affect long term investors or ordinary traders in any way. This video makes it look like something very scary and illegal by pointing some very rare incidents that have occured.
@thowa13 жыл бұрын
thise gus don't provide liquidity, they only buy if they already see the seller and are frontrunning to see the arbitrage that would otherwise stay with buyer and seller...
@TheChrist5595 жыл бұрын
They fast af!!
@EnigmaCodeCrusher13 жыл бұрын
6:40 Brother of Jon Stewart. Vice-President of the New York Stock Exchange.
@keypusher06 жыл бұрын
MATH WIZARDS
@dondreytaylor80016 жыл бұрын
Math Wizards make algorithms, makes sense to me lol
@targetmann100ify3 жыл бұрын
The mini crash is a classic pump and dump ..Somebody with skilz had a good day :-)
@ariffadam56113 жыл бұрын
In the movie Terminator - Skynet took over the world via technology, Skynet probably now choose to destroy humanity via the stock market.
@Lobotommy1103 жыл бұрын
6:45 Fun fact that's Jon Stewart's brother.
@TheLuminousOne5 жыл бұрын
Hey man this is great ...stacks, bands, ko-laderal, this is great for the ekanami........all our gambling is going to salve all the world's greatest prablems....of course a depression won't come about b'cas of it.
@MrRooibos1235 жыл бұрын
I'm not at all qualified to say this but surely this is bad for the health of the markets?
@despairgaming66693 жыл бұрын
Sure it is, manipulation of market .
@manasmahanand7323 жыл бұрын
Yeah, but it isn't anything new either. People have been doing this for ages. Just s lot slower. This is why I say this. Until the internet, and online trading, people had to go through physical brokers to trade, and trade based on information they get from newspapers. Now by the time retail traders got the news, and then make a decision, tell the brokers, and the brokers execute the trade, the rich inside traders have already adjusted the price based on the news. (They get the news much earlier than retail traders through inside connections) This is essentially the same now, except the bots can read and act on news much quicker than retail traders can.
@eyesopencam12 жыл бұрын
holy shit!
@JC-qq9sw3 жыл бұрын
They out here doing millions of trades and we retail traders have to deal with PDT
@doresearchstopwhining5 жыл бұрын
This piece is too focused on the unknown affects of what the HFTs can do to the market and does nothing to question the premise that HFTs use to describe what value they add to the market (ie add liquidity). Just because you are adding volume doesn't mean that liquidity makes for more stable markets and in fact as we have seen in the flash crash, it can cause disruptions. If only the SEC came in and promoted standards that synchronized all the exchanges better so the called value that HFTs add would be geared towards actually adding liquidity and not taxing the average trader. Something needs to be done but the SEC is too corrupt to do anything about it.
@dont.ripfuller6587 Жыл бұрын
They don't make strong enough coffee to wake this SEC up.
@doresearchstopwhining Жыл бұрын
@@dont.ripfuller6587 More like the SEC is too in bed with the entities they are supposed to regulate.
@manny27415 жыл бұрын
Computer cannot tell how low the stock is going to go. Stocks can go up fast just as it can go down fast. This is very unpredictable. You cannot write algorithm to take advantage of stock markets volatility. The only thing it can do is make trades fast. Why is the guy in the video in a loss for 3 days with super computers? Every trader loses and gains in day trading. A lot of luck plays with day traders.
@CDean305 жыл бұрын
supercomputers aka a MacBook Pro and think or swim platform lol
@lydellfabin645 жыл бұрын
sure this will work in the short term, but buy and hold people aren't affected.
@cmhvacr10105 жыл бұрын
How do you know what’s a fair price when u are entering a trade, it’s all up to the algos and “investors” are dumb money if you are in it for the long haul you are stupid and will pull out ur money when ur 70 in a 15 year bear market, good luck hope it works out for you
@punchthedog3 жыл бұрын
Larry Leibowitz is Jon Stewart's brother.
@Iwish4zombies6 жыл бұрын
How do they afford commissions?
@swazeyyy6 жыл бұрын
sickflow does Goldman Sachs use TDAmeritrade?
@Iwish4zombies6 жыл бұрын
Jonathan no robinhood. They don’t pay commissions
@TheMmg19825 жыл бұрын
that´s funny
@Undernods5 жыл бұрын
or they get deals with brokers??? Jesus this should be open info lol
@RandommVideoShots5 жыл бұрын
These guys ever traded, lol, they have brokerage license. They pay direct fees to exchange
@Pachi40266 жыл бұрын
This will end bad. Spectacularly bad.
@sandysandy9673 жыл бұрын
Can anybody say how stocks are manipulated??
@dm20603 жыл бұрын
"Robot computers". Decade old terminology sounds laughable now.
@TL5official3 жыл бұрын
Today it's bots. Not to much of a change.
@cs28743 жыл бұрын
This video itself is a decade older.
@dm20603 жыл бұрын
@@cs2874 well yeah, which is why the terminology is decade old.
@SummerWinter7666 жыл бұрын
Computer don't mean a thing. A great trader doesn't care if computers are around because we use something much better. Its called a "Brain" lol This is our advantage!
@DomJLva5 жыл бұрын
A fellow Martin Shkreli fan please watch out with impersonating Martin
@sl80945 жыл бұрын
Absolutely.
@ariwassaved5 жыл бұрын
nah swear show me a link lool??@@MrSupernova111
@gaatjeniksaan3365 жыл бұрын
buuuuuut..... if it's so quick etc, then how can those computers sell in seconds? cuz u gotta order the stocks first... and when u wanna sell them it also takes time. So ur gonna tell me that computers don't have to wait until someone bought the stocks that the computer wanted to sell? or????
@fahadus5 жыл бұрын
They said 70% of trading is done by bots, so lots of volume.
@gaatjeniksaan3365 жыл бұрын
Yes but there is still a chance that nobody wants to buy the order which the computer put, so then the computer is left with a not sold order
@fahadus5 жыл бұрын
gaat jeniksaan Apparently, that risk is easily manageable by their quants. These companies have shown thousands of days of profits in a row.
In this interview i felt like interviewer was angry.
@renanjfmorais83694 жыл бұрын
@Harry Smith Probably.
@wongrichx Жыл бұрын
Do these companies still exist?
@sxavathi92955 жыл бұрын
Should they be allowed to compete with human beings?
@kishwaralamgir44687 ай бұрын
I literally cant understand why anyone would find this bad.
@cosmicyoke6 жыл бұрын
imagine when quantum computers start being used..
@TheChrist5595 жыл бұрын
Or buy high & sell low!!!
@MrQuickPro5 жыл бұрын
pump-n-dump ?
@exceptionhandler783 жыл бұрын
We are machines, shyam.
@Reebox323 жыл бұрын
y esto tiene 9 años, nvidia ni tocaba la ai en ese entonces...
@sychophantt3 жыл бұрын
Does this still exist?
@illum369634 жыл бұрын
How are they cheating the taxes on that?
@dougmarrone5063 жыл бұрын
Joe Saluzzi's business just brokers for big mutual funds and the slow money so to speak. The fact that he's worried about HFT's front running for a fraction of a penny while his clients are holding for weeks or months is kind of stupid. They're optimizing nanoseconds these days and retail traders can actually colocate pretty affordably now. HFT edge isn't nearly what it used to be anyway. I worked for a commodities futures and currencies liquidity provider, holding for days/weeks/months is a better business to be in, in many ways.
@iamonlyonepersonintheworld41095 жыл бұрын
Best one
@johnathandoe69163 жыл бұрын
That's why people hate hedge funds
@kjosephf6 ай бұрын
In this case, it’s not the house but the neighbors that always win
@MillennialJesus8 жыл бұрын
Fuck !!!! Am speechless
@arparp33064 жыл бұрын
Its funniest when americans talk about Transparency and fairness 🤣🤣
@1N73RC3P7OR3 жыл бұрын
If you think that's funny, then you haven't been to the EU.
@arparp33063 жыл бұрын
@@1N73RC3P7OR 😵😯
@rushiljohar42066 жыл бұрын
$150Million PROFIT/yr ...not bad
@mnkybizzz7 ай бұрын
crazy
@joe241able4 жыл бұрын
i hope this does not happen again
@AndogaSpock3 жыл бұрын
Ban market value of shares. Only allow people to trade at face value.
@ga20904 Жыл бұрын
I wonder If those computers are using AMD or INTEL chips 6:26
@GettinUp Жыл бұрын
Intel forsure.
@ga20904 Жыл бұрын
@@GettinUp Probably 👍
@OceanPotion776 жыл бұрын
Computer Robots...
@overcastfriday812 жыл бұрын
This is not responsible journalism. The flash crash they spoke of, was not triggered by HFT. The manipulator did not use co-location or supercomputers. He did use algos and they were applied very quickly, however it was not HFT. To call it that, is just lazy.
@XhosaShinobi014 жыл бұрын
but isn't this similar to technical traders? they generally also don't care about underlying fundamentals either. if that's the issue then technical trading should be banned as well. good luck with that.
@harryhunt17355 жыл бұрын
So its Pay to win?
@kevin10495 жыл бұрын
seems like an argument between technical analysis advocates and fundamental analysis advocates