Some Knowledge about What I am Doing

There is an article on the Wall Street Journal. I found it really interesting and helpful in understanding what is going on on financial market. The emerging automatic high frequency trading is stepping into the market and playing a dominant role:http://online.wsj.com/article/SB124908601669298293.html


" In the trading community, high-frequency has drawn interest because it was a wildly successful strategy last year. More recently, it made headlines when a former Goldman Sachs employee was charged by federal prosecutors with stealing trade secrets from the firm's high-frequency platform.

Also grabbing attention are the volume numbers. High-frequency trading now accounts for more than half of all stock-trading volume in the U.S. It also generates more revenue for exchanges. NYSE Euronext, owner of the New York Stock Exchange, is building a data center to cater to high-speed traders."

http://www.lme.com/who_why_hedging.asp

And another very important concept is hedging. Traders use hedging to reduce their risks of losing money by buying and selling at the same time. The link above tell us why traders need to hedge when they trade.