4 ms·
Think London to NYC, or NYC to Tokyo. Fiber will be slower. https://youtu.be/QEIUdMiColU?t=196 https://youtu.be/QEIUdMiColU?t=196
by etaty 7y ago
Think London to NYC, or NYC to Tokyo. Fiber will be slower. https://youtu.be/QEIUdMiColU?t=196 https://youtu.be/QEIUdMiColU?t=196
- godelski 7y agoWhat I'm saying is that it's faster to just buy a server in NYC.
- eloff 7y agoThe idea is you profit on acting on cross market trading before anytime else can. It's not about latency to any single market.
- godelski 7y agoSeeing something before someone else can IS latency. That's why servers on the NYSE floor (or ANY SE floor) are really expensive. Because it gives you an advantage. It isn't humans reacting and buying in HFT, it is computers. The humans are constantly updating algorithms, but HFT means it is the computers doing the reactions (based on algos written).
- layoutIfNeeded 7y agoThey have servers in both locations. If you see that a stock starts falling in London you have a time window where you can still sell it at a higher price in say New York, until the price drops to the same level thus closing the opportunity for arbitrage.
- Consultant32452 7y agoHow quickly can you "see" the price falling in London and get that message to NYC? Whoever "sees" it first wins, right? That's what they're talking about.
- mruts 7y agoI don't think you understand what many HFT firms do. They arbitrage between exchanges. For example the option or futures price of a security in Chicago and price of the underlying in New York. Also arbitraging between equities listed on multiple exchanges. Co-location isn't a solution to these problems, and low latency lines between exchanges in different parts of the country and world is a huge huge factor to successfully implementing many/most HFT strategies.