As you probably know, electronic exchanges put stock trading on steroids. As such, gone were the days when buyers and sellers gathered on the floor hashing out a deal. Today, they're on the floor, but powerful algorithms can make the difference between earning millions of dollars or losing that amount. And thanks to high-frequency trading, powerful Wall Street systems that tend to outsmart all other computers and humans, companies engaging in this type of trading are reaping huge benefits.
Yet, this new form of trading isn't without controversy and the SEC is investigating certain aspects of this practice. Due to their speed, these computers can spot trends before others and change orders at the blink of an eye. So, if you want to know why there's such an increase in stock exchanges, high-frequency trading is one area to investigate.
Check out this hilarious clip on Wall Street's latest strategy.
| The Daily Show With Jon Stewart | Mon - Thurs 11p / 10c | |||
| Cash Cow - High-Frequency Trading | ||||
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