Predatory Strategies in High-Frequency Trading

Carlos Jorge Lenczewski Martins

Abstract


The development of High-Frequency Trading since the 1990s has been so dynamic, that one may say it certainly will be present in every country, sooner or later. Most of the research dedicated to High-Frequency Trading is dedicated to show how detrimental it may be to the financial system, other present business models and integration with other entities of the financial market, some try to research how profitable this type of trading may be, and finally some research is dedicated to the risk analysis – although these papers are very limited. This paper is aimed to expand the topic of business models by showing selected strategies of High-Frequency Trading. This is very important since these strategies may be also implemented in conditions of lower liquidity and have a direct influence on the stability of large institutions.


Keywords


High-Frequency Trading; predatory strategies; algorithmic trading

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References


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DOI: http://dx.doi.org/10.17951/h.2017.51.4.207
Date of publication: 2017-12-08 15:26:42
Date of submission: 2017-02-13 17:55:24


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