The ultimate goal of businessmen is to pursue profits.

This is most vividly expressed in high-frequency trading.

Every supercomputer or mainframe has a pre-set arbitrage strategy. Buy it first, choose to enter and give up the volatility, and the most important thing is the stop loss order, which is a line set by investment institutions in order to place uncontrollable losses.

Once it falls below this line, the computer will immediately sell the certificate of deposit to ensure that the loss is within a certain range.

Although arbitrage strategies are ever-changing, one major purpose will not change. That is, to pursue the maximum profit and minimize risks as much as possible.

Specifically in high-frequency trading, it is the first to discover two orders with large interest rates and complete the process of in and out in an instant.

The investment department of Merrill Lynch also did the same.

However, when various investment institutions are staring at the same exchange, conflicts inevitably occur.

Whoever can discover first and who can complete the arbitrage transaction first has naturally become the most important thing.

Today in 2003, the developing high-frequency trading has not entered the era of full competition, because the market is so large and the number of high-frequency traders is so small. Due to the still underdeveloped computers and their systems, competition is carried out in a moderate and silent way.

Whoever has faster computing speed and whoever has faster transmission speed and whoever can grab the order first will belong to it.

Merrill Lynch, who have just entered this industry, has not encountered too strong opponents. They sometimes lose some opportunities, but overall they are satisfying.

That's why the Minister was the first to take Catherine and others to see the latest technology, Wall Street recognized the future development direction.

Who would have thought that in just a few minutes, three large computers worth nearly 10 million US dollars made consecutive mistakes.

Except for a small number of white orders, there are almost few blue orders.

The most are all orange.

The orange on the screen is like a big leaking orange.

The minister didn't bother to sweat, and sat down on his seat and began to check the transaction records. The more he checked, the more frightened he became, and the increasing list made him even more anxious.

Catherine was confused and chased her into the office and asked, "If there is no deal, there is no deal. What's the matter?"

"High-frequency trading depends on the number of transactions." The minister didn't bother to speak, and after a long time, he said: "The other party always comes in front of us and buys profitable orders. If this continues, we will definitely be trampled by him."

This is also the only way for high-frequency traders to compete at present.

It’s just that before, no high-frequency trader has ever been so fast.

"Why is the trader so useless?" Katherine refers to the Georgian she values.

"It's not his problem." The minister said, and said to himself: "It shouldn't be."

"What's wrong?"

"Their reaction time is too fast, and it's not that they take orders quickly. I checked the NYSE's tiered service providers, and without them... it's more like a fast analysis - what a good computer..."

Mark suggested: "Will their software strategy be good?"

The minister suddenly felt energetic and thought that Catherine didn't look for a fool, and asked, "What do you mean?"

"I don't know very well, but I think that computers are so expensive, but if you use a good strategy to deceive you or something and take over your own business... maybe it's the idea of ​​a few geniuses..."

Mark actually doesn't understand computers at all as he shows.

In fact, he studied finance in Germany for two years before being sent to the United States to complete the Vatican's layout in the financial market.

So although he made suggestions, he couldn't say too much.

The minister was a little disappointed and looked back at the screen.

But Mark believed in his judgment quite well, pretended to go to the bathroom, and secretly asked the Holy See inside.

For humans on earth, Wall Street affects everyone. Even villagers who have never left the county in remote and impoverished mountainous areas are exploited by them, let alone the huge Vatican organization.

The numbers on the screen are still refreshing.

Just like Jinyuan International’s account.

The proportion of orange gradually expands until all colors on the screen are covered.

The minister made a quick decision and gave up and said, "Exit the New York Stock Exchange, now."

"We still have 270,000 orders but have not taken action." The trader immediately yelled. Since the orange splashed the screen, some of their arbitrage orders that were originally sure were also stuck in their hands because they were taken first by the other party.

For high-frequency traders, this is simply the most terrible disaster.

"Stop loss." After saying that, the minister sat on the chair.

At least five minutes later, he shouted and said with a wry smile: "Catherine, you're laughing at you. I'm afraid you've lost at least $500,000 today."

The loss is so small, thanks to the low risk of high-frequency trading. Unless the market violates common sense, it will naturally bring low risk of a single transaction due to the low profit of a single transaction.

The minister has been fighting on Wall Street for many years, but despite losing his composure, he still quickly adjusted his mood. Compared with the losses, the decision to withdraw from the New York Stock Exchange is more important. I am afraid that the board of directors will be questioned tomorrow.

Catherine was surprised, but she smiled and comforted her: "It's normal for you to make so much money for the company every year."

It's pretty, but in his consciousness, he really didn't take the 500,000 US dollars to heart, just a yacht.

The minister seemed to be full of strength again, and he said with a key point: "A order, if you hold it for more than 15 seconds, there will be huge risks. Market opportunities will be fleeting, and so will arbitrage opportunities."

He clicked on the name of Jinyuan International on the screen and said, "They want to eat the New York Stock Exchange."

"Eat clean?"

"At their speed, I'm afraid I can change hands in 10 seconds now." The minister shook his head and laughed, saying, "I think they are specializing in the New York Stock Exchange. As long as we keep our current state without making any mistakes, we must be orange."

"The exchange doesn't care?"

"Look. We can't wait for those politicians tomorrow." After saying that, the minister shouted: "Today, do Nasdaq first, Tom goes to talk to Chicago, and we'll enter tomorrow."

The traders continued to get busy.

The minister stared at the computer screen, looking up something from time to time.

Mark accidentally walked behind him and saw that the content inside was indeed Jinyuan International.

High-frequency traders are not mysterious figures. They have corresponding filings and information of varying quantities on the exchange. The banks will collect more comprehensively, and even include the company's daily financial status, but this information is not easy to obtain.

Although in the eyes of most Chinese people, if they can earn $1 million a day, they will probably want to hide on Mars and not be discovered. But on Wall Street, there are many traders who earn $1 million a day, let alone bosses and institutions.

Those math geniuses who graduated from Yale and MIT look stupid like common brainless people, but the various financial derivatives they invent every year bring considerable benefits to the entire market and of course they also bring tens of millions of salary returns.

In this world of gold, information is the most valuable and least valuable thing.

About 10 minutes, the Georgia boy shouted: "Sir, the trading strategy has been changed again, priority is given to Nasdaq, and the New York Stock Exchange is reduced by 6 priority levels, countdown to 10 seconds to switch, 9 seconds to switch, 8 seconds to switch..."

"Let's take a look." The minister closed the page of Jinyuan International, closed his eyes and calmed down for a while, before continuing to look at the newly changed trading strategies.

"7 seconds, 6 seconds..." The Georgia boys were still counting. They would not waste a little time when they were racing against time unless they were clearly terminated.

The minister has not said anything.

At the countdown to 0, the traders were nervous for a moment and then relaxed again.

Then, it's the computer business.

What they have to do is to react quickly when the computer encounters things outside of mathematical models, just like before.

The orange on the big screen was gradually removed, less and less until it was nowhere to be seen, and some beautiful blue began to appear, making everyone happy.

Seeing that the minister's expression was always serious, Mark couldn't help asking: "Are you worried that they will enter Nasdaq too?"

"They will definitely enter." The minister had no disgust towards him, and said on the screen: "Their bank is a Mellon national, with 265 times leverage. It is estimated that the principal of the company is not very high. At the current rate of increase, hum."

Mark suddenly understood and asked, "How much do you estimate their total amount of funds in the market?"

Although he studied finance for two years, he is definitely not as good as an old trader at Merrill Lynch.

"It's between 200 million and 1.5 billion." The minister gave a very broad number because of the problem of capital utilization.

However, for them, the difference between 200 million and 1.5 billion is not big. Based on 265 times of leverage, it is only 750,000 to 5.6 million.

Mark immediately concluded: "Is it a newly established small company?"

"That's not small at all. They don't know that the supercomputer they use costs tens of millions, maybe hundreds of millions of dollars." The minister smiled like a crayfish, and his messed hair was slashing in the air like claws.

When he heard hundreds of millions of dollars, Malk's eyes twitched.

He glanced at Catherine who was teasing the Georgia boy and said in a quick and light tone: "If they had $100 million, wouldn't they be able to sweep New York?"

"It's enough to sweep North America," the minister said, grabbing the phone and saying, "Sorry, I want to talk to the guys from Mellon Bank."

As a bank investment department, it is almost an open secret to obtaining insider information.

Mark left with a smile, but his mind was completely overturned.

A supercomputer worth 100 million US dollars and a principal worth 5.6 million US dollars were mixed together. He naturally came to the conclusion that there was no supercomputer worth 100 million US dollars. It must have been a small company that invented some special trading strategy, just like high-frequency trading was invented.

If Jinyuan International is a famous investment bank, Mark might think that such trading strategies are only applicable to the operation of a small amount of capital.

But in reality, he believes in his judgment more.

"I want to get it." Mark made a decision immediately. In his opinion, this was perhaps the biggest gain he had with Catherine.

...v
Chapter completed!