?what is high frequency trading strategy

trading mein, High-Frequency Trading (HFT) ne apna aham kirdar ada kiya hai, jise ke financial markets ki operability mein tabdil kar raha hai. Jaise ke aap ek hissa waqtan-fa-waqtan individual forex trader hain, HFT ke gehrayon mein samajh hasil karna market ke dynamics mein ahem malumat farahem kar sakta hai.



High-Frequency Trading Ki Tashreeh: High-Frequency Trading, jise aksar HFT ke naam se jana jata hai, aik trading strategy ko daryaft karta hai jo market mein bohot se orders ko itni tezi se execute karna shamil hai. HFT ka bunyadi maqsad market mein chhotay price farqat se faida uthana hai, jise ke milliseconds ke andar trades ko execute kiya jata hai. Is tajaweez mein advanced algorithms aur cutting-edge technology ka istemal karna hota hai taake market data ko tafseel se analyze kiya ja sake aur trades ko jald bazi se execute kiya ja sake.

HFT Ke Khaas Kirdar:

1. Tez Raftar Sab Se Ahem Hai: HFT insan traders ki kapasity se zyada waqt scale par kaam karta hai. Taqatwar computers aur high-speed data connections ka istemal HFT algorithms ko split-second faislay lene aur trades ko tez tareen raftar mein execute karne ki anumati deta hai.
2. Algorithmic Trading: HFT ke liye markazi hai mushkil algorithms ka istemal jo ke bohot se market data ko analyze karte hain, patterns aur trends ko pehchantay hain. Ye algorithms trading faislay ko khud-ba-khud lene ke liye design kiye jate hain, jise ke manual intervention ki zarurat nahi hoti.
3. Liquidity Provision: HFT firms aksar market mein liquidity farahem karne ka ahem kirdar ada karte hain. Frequently positions ko enter aur exit karke, ye traders ek zyada liquid market environment mein contribute karte hain.

HFT Strategies:

1. Market Making: HFT firms aksar market making strategies mein shamil hote hain, bid-ask spread se faida uthane ke liye buy aur sell prices quote karte hain. Ye strategy kam price farqat ke sath zyada volume of trades par mabni hai.
2. Statistical Arbitrage: Statistical arbitrage mein short-term price discrepancies ko exploit karna shamil hai jo ke related financial instruments ke darmiyan hoti hain. HFT algorithms ye anomalies ko pehchantay hain aur quick profits hasil karne ke liye trades ko execute karte hain.
3. Order Flow Analysis: Kuch HFT strategies market mein order flow ko analyze karne par mabni hote hain. Other market participants ke buying aur selling activities ko track karke, HFT algorithms short-term price movements ko predict karne ki koshish karte hain.

HFT Ke Fawaid:

1. Efficiency aur Liquidity: HFT market efficiency mein shamil hota hai by bid-ask spreads ko narrow karke aur liquidity ko barhakar. Isse sabhi market participants ko, including individual traders, trades ko mazeed smooth aur tez tareen taur par execute karne mein madad milti hai.
2. Price Discovery: HFT ki tez raftar mein naye malumat ko prices mein timely shamil karna hota hai. Ye more accurate price discovery mein madad karta hai, yaani ke market prices ko sab se taaza malumat ke mutabiq banana.

Mushkilat aur Fikrayat:

1. Market Volatility: Tanqeedkar ye kehte hain ke HFT market volatility mein hissa dal sakta hai, khaas kar economic uncertainty ke doran. Large volumes of trades ko tezi se execute karna price swings ko amplify kar sakta hai.
2. Technical Glitches Ka Khatra: Technology par itemaad ke bajaye HFT firms ko technical glitches aur system failures ka khatra hota hai. Ye significant financial losses aur, extreme cases mein, market disruptions ka samna kar sakte hain.

Assalamu Alaikum Dosto!

High-Frequency Trading (HFT)

Har shakhs jo maliyat ke shobay mein dilchaspi rakhta hai, usay mukhtalif trading tajaweez ke mojood hone ka maloom hota hai. Kuch in tajaweezat ka bohot maqbool hota hai jabkay doosriyon ke baare mein kam maloomat hoti hai, is bawajood ke is ne ek dasht saal se zyada ka waqt guzara hota hai. Isi ka ek misal hai HFT trading, jise high-frequency trading ka short form bhi kaha jata hai, aur ye tajaweez khud mein fori trading ko shamil karta hai, jisme orders fraction of a second mein kholay aur band kiye jate hain.
High-frequency trading maliyat ke markets mein algorithmic trading ke mukhtalif tajaweezat mein se aik hai. Is tajaweez mein software ka istemal hota hai jo trading positions ko qareebi fori se kholne aur band karne ki ijaazat deta hai. High-frequency trading ke liye aik kaafi taqatwar computer aur achi internet connection ki zarurat hoti hai. Kisi bhi deri ya doosre intezamat ki wajah se aap forex strategy ke shara'it ko pura nahi kar sakte aur aapko nuksan ho sakta hai.
Is tajaweez ki tareekh late 1990s mein shuru hui jab SEC (Securities and Exchange Commission) ne American Securities Commission ko electronic forex trading platforms ka istemal karne ki ijaazat di. Esentially, high-frequency trading market ko scalping ka tareeqa tha. Trades kuch seconds ke liye kholi jaati thin. Waqt ke sath, positions ko rakhne ka waqt mazeed kam hua. Ab ye sirf fraction of a second ka waqt hai. Yeh hai high-frequency trading ko doosre maliyat asaasoon se kaise mumaalik hota hai.
Aaj ke dor mein is tarah ke traders ke liye average holding time sirf 22 seconds se zyada nahi hota. Is dauran aksar orders ko bohot zyada volume ke sath lagaya jata hai. High-frequency trading mainly is liye istemal hota hai taa ke trader apni positions ko agle trading din tak nahi le kar jaye aur phir bhi kafi achi munafa hasil kar sake. High-frequency trading mein trades ko large volumes mein kholne ka tareeqa istemal hota hai. Targets aam taur par bohot chhote hote hain (fraqtion of a second ke trades ko mad e nazar rakhte hue). Kabhi kabhi aik trade ka munafa sirf kuch cents ka hota hai. Is liye yahan volume ka bara maqam hai taa ke kafi munafa ho sake.

HFT-Based Trading Systems

High-frequency trading mein kuch dilchasp strategies ka istemal hota hai jin se aap baray munafa hasil kar sakte hain. Aik is tarah ka tareeqa hai liquidity farahem karna. Iska kya matlab hai? Trader liquidity farahem karta hai, aur unki kamai bid aur ask prices ke darmiyan forex spread ki farq hai. Doosra tareeqa statistical arbitrage hai. Is tareeqay ka istemal assets ki taalluqat se faida uthane ke liye kiya ja sakta hai. Ye strategy alag alag mulkon ke exchange par aur ek hi mulk ke trading floors par bhi istemal kiya ja sakta hai.
Liquidity ki talash. Is tareeqay ke mutabiq, aik trader doosre traders se badi miqdaar ya chhupayi gayi bids dhoondhne ki koshish karta hai. Aik aur tareeqa delays par arbitrage hai. Ye technique un situations ke liye munasib hai jahan aapke paas malumat ka access hai aur aapke orders ko zyada tezi se process karne ke zariye waqt ka faida ho sakta hai.
News par arbitrage. Ye strategy un logon ke liye dilchaspi hai jo apne kaam mein news feeds ka istemal karte hain. Jaise ke aap is naam se hi samajh sakte hain, yahan trader forex statistics ka pehla haasil hota hai aur fori orders bhejta hai, practically market se aage kaam karte hue.
Delays ko kam karke arbitrage. Ye tareeqa orders submit karne ke equipment ki na-purkashish ko kholne ka tareeqa hai.

Koun High-Frequency Trading Applies Karta Hai?

Theoretically, koi bhi shakhs jo computer technology aur trading mein maahir hai, aisa robot bana sakta hai jo market ko analyze kare aur trades kare. Lekin is ke bohot zyada kharch ki wajah se har trader is ka intezar nahi karega. Ek aur rukawat ye hai ke aapke paas exchange ke liye seedha access ka tajaweez aur aik high-level programming language ka ilm hona chahiye. Aur ye aksar aam investors ke liye aur bhi mushkil hai.
Iske alawa, ye amal robot banane tak hi khatam nahi hota. Usay maintain karna bhi zaroori hai, aur uske functioning ke liye technical shiraa'it bhi banani padti hain, jo ek aur kharch hai.

Isi liye aksar is qisam ki trading ko bade companies istemal karti hain. Unke paas is ka amal karne ki technical aur maali salahiyat hoti hai:

• Proprietary Trading Organizations: Ye maliyat companies hain jin ka maal trading ke sath juda hota hai. Inhein sirf apne funds mein trading karna hota hai, aur ye alag alag maliyat asaasoon mein invest karte hain.
• Brokers: Ye apne high-frequency aur tezi se trading ke liye apne sub-departments rakhne wale brokers hote hain. Ye amal company ke capital se hota hai aur client trading aur proprietary trading do alag lines of business hote hain.
• Hedge Funds: Ye arbitrage strategies ka istemal kar ke faida uthate hain. In funds ko mojooda financial instruments chunne ke liye tajaweez hai aur unke pricing ke nuances ka istemal karte hain.

Is ke alawa, high-frequency trading banks aur investment institutions mein bhi bohot mashhoor hai. In sab mein kuch common features hain:

Taqatwar capital jo trades mein invest hota hai.
Apne funds ke sath trading, client ke funds ke sath nahi.
Behtareen maali performance: HFT sirf kamyab companies dwara istemal hota hai.
Aam taur par, organizations ke istemal ke liye high-frequency trading ke algorithms raaz mein rakhe jate hain aur ye public domain mein nahi hote. Haalanki, haal mein is tarah ke algorithms ka individual users ke liye daakhil karna asaan ho gaya hai lekin beginners ko ye samajhna zaroori hai ke unko muqamiyat ke dauran significant price jumps ka samna karna hoga, jo ke kabhi-kabhi achanak ho sakte hain. Behtar option ye hai ke aap intraday trading mein maharat hasil karen aur phir high-frequency trading mein switch karen.

High-Frequency Trading (HFT): Pros & Cons

• Pros:
  • Mawafiq Market Participants: Ye trading tijarat karnay walon ke liye aham hai, jaise ke bade companies, banks, aur hedge funds, etc. HFT ke zariye in market participants ko trading ke dauran ziada munafa hasil hota hai.
  • Zyada Munafa: Bohot se experts ka khayal hai ke high-frequency trading, bohot ziada transactions aur unki tezi ke bawajood, market mein ziada liquidity paida karta hai. Yeh liquidity, private traders jese aur bhi shakhsiyat ko bhi attract karti hai.
  • Missed Opportunities Ka Khatma: HFT activity, aisi situations mein bohot faida pahunchata hai jab players ko terminal mein dakhil hone ka mauka nahi milta, aur woh profitable order rakh nahi saktay. Is se "buyers" aur "sellers" ki mulaqat ko tezi se barhaya jata hai, jo ke market ko balance karta hai.
    
    Example:
    Trader A ke pass aik aam corporation ki share hai, aur Trader B usay $10 par khareedna chahta hai. Agar woh waqt par aik doosre se miltay hain, to deal hoti hai, aur stock ki qeemat market value ya us ke qareeb hoti hai. Agar deal nahi hoti, to Player A ko stock ko bechnay ke liye qeemat ko ghata kar dena parta hai, jaise ke $9. Yeh qeemat phir market price nahi rehti. Yeh hai ke high-frequency trading "buyers" aur "sellers" ke darmiyan mulaqatain tezi se barha deta hai, jo ke market ko balance karta hai.
• Cons:
  • Volatility, Market Noise, aur False Surge: HFT ka istemal karne se market mein artificial izafa hota hai, jise market noise aur jhooti supply ya demand ka surge bhi kaha jata hai. Yeh teen factors wo logon ke liye khatra ban saktay hain jo high-frequency trading apne amal mein nahi lete.
  • Real Price Mein Izafa: Kabhi-kabhi HFT players price manipulation ke zariye haqeeqi price mein izafa kar lete hain. Is se market par asar hota hai, aur is trading ki ethihaad sawaal uthata hai.
  • Fraud Ke Mumkinat: Bohot se critics ke mutabiq, high-frequency trading mein private players ko is trading ke nuances ka pata nahi hota, jiski wajah se fraud ke mumkinat hoti hain. Is liye HFT ke muqablay mein darust hone aur iski ta'eed tak mabni restrictions ka tasavvur hai.
  • Frontrunning Ka Asar: Bohot se HFT robots bade players market mein dakhil hone se pehle moments mein trades lagate hain. Is se market balance bigar jata hai aur HFT players ko faida hota hai.
  • Robots Mein Mubahis Competition: HFT robots aapas mein muqabila karte hain. Jabke private traders unke muqablay mein nahi hote, to high-frequency trading ke andar aik sakht jang hoti hai. Iski wajah se mushkil schemes ke amal mein kamzori ati hai, jo ke assets ki liquidity ko kam kar sakti hai.
  • Expensive: High-frequency trading ke liye zaroori infrastructure mehngi hoti hai, lekin ye hamesha mustahiq nahi hoti. For example, Chicago se New York City ko jodne ke liye fiber optic line banane ke liye pahaadon mein chhed banane ki zarurat thi. Aur is kaam mein 300 million dollars kharch hue. Yeh sab is aik single transaction ke execution time ko teen milliseconds kam karne ke liye tha.

High-Frequency Trading: Mumkina Risks

High frequency qisam ke trading se apni maliyat judne walon ko samajhna zaroori hai ke is qisam ki tijarat mein bohot ziada khatrat hain. Yahan hum in risks ko detail se dekhte hain:[list][*] Technical Faults: Devices ya trading networks mein honay walay technical faults, chhote hon ya baray, muntazir munafa ke bajaye nuksan ka bais ban saktay hain. 2012 mein, hedge fund Knight Capital ne algorithm update karte waqt kiye gaye technical error ki wajah se aik ghante mein $450 million se ziada ka nuksan uthaya.[*] Market Manipulation: Market ko artificial taur par manipulate karne ki mumkinat, jo ke chhote players ke liye anjaane final results paida kar sakti hai. 2009 mein aik fund ne NASDAQ par securities ki value ko manipulate karne ka aik case samne aaya tha.[*] Individual Traders Ki Etemad Ki Kami: Har player floor par trading aur risks lenay ka himmat karne mein hosla nahi rakh sakta. Yeh important hai ke samjha jaye ke jo sari risks hain, woh HFT traders ke sath judi hui hain aur doosre market participants ke sath nahi. Is dusre case mein, bat chalti hai is qisam ke trading ke hone ki.

Prospects For Such High Frequency Trading

High-frequency trading ke faide aur nuksanat ka mawazna karne ke baad, ab sawal hai ke is trading ka mustaqbil kya hai. Is trading ke shor-e-umr ka waqt guzar raha hai. HFT ki services dene wale companies ka volume dheere-dheere kam ho raha hai, jab ke technology hamesha naye ahdood mein hai.
Lekin, is trading ki gradual kami ka bhi aik wajah technology ki hadood mein hai. Haqeeqat ye hai ke inki constant development traders ke imkaanat aur fizai qanoonon se mehdood hai, aur inke barabar naye investments chahiye jo ke khud ko justify nahi karti hain.
Aur ek aur masla ye hai ke possible mistakes ka khatra hai, jo samajh sakte hain ke ye kitna bara nuksan kar sakta hai. Ye nahi keh sakte ke systems market par bina testing ke release hotay hain. Lekin ye hamesha kaamyaabi la nahi sakta. Software taiyar karne wale ki chhoti si ghalti bhi funds ka bohot bara nuksan kar sakti hai.
Is waqt ye mushkil hai ke ye market future mein kis tarah se develop hoga. Kuch HFT istemal karne wale players long-term forecasting ki taraf move kar rahe hain. Doosre ab bhi is mein paisa banane ka mauka dekhte hain. Shayad aage kuch aisi technology ka izhar hoga. Lekin is waqt is ka koi ishara nahi hai.

Conclusion

Is tarah se, high-frequency trading ne apni apni jagah market mein bana li hai. Is type ki trading ki interest waqtan-fa-waqtan izafa hoti hai ya phir tezi se gir jati hai. Lekin ye haqeeqat hai ke ye mojood hai aur is ka istemal kuch market participants ke liye aham hai. Kuch enthusiasts ye bhi kehte hain ke exchange trading mein high-frequency trading ka mustaqbil hai.
Tawajju dene wale is tareef mein bhi ke ye criticism ke bawajood sabit hai ke HFT liquidity ko maintain karta hai, trading volumes ko barhata hai, aur bid aur ask prices ke darmiyan spread ko kam karta hai. Aur yeh sab assets ke pricing ki efficiency ko barhata hai jo market mein trade hoti hain. Doosri taraf, is tarah ki trading aksar large institutional players ke liye hi mawafiq hoti hai. Woh hi log hain jo is se sab se ziada munafa kamatay hain, aur aksar chhote market participants ke nuksan par.
High-frequency trading ek qisam ka scalping strategy hai, aur woh bhi kafi aggressive. Large volumes ke sath trades kholne par aapko ye samajhna chahiye ke agar aap position ko lamba samay tak rakhenge to nuksan ho sakta hai. Basicall, HFT trading sirf aisay scalpers ke darmiyan mubahisa hai. Aik trade ka munafa haqeeqatan mein bohot kam hota hai, kam az kam agar aap ise intraday trading ke saath muqabla karenge, lekin scalping ke saath nahi.
HFT trading khaas tor par un logon ke darmiyan popular hai jo ke tezi se internet ka channel rakhte hain. Is ke zariye trader, pehle to zaroori malumat ko doosron se zyada tezi se haasil kar sakta hai, aur doosri taraf, woh doosron se zyada tezi se aik trade kholne ka order bhej sakta hai. Jihaan, agar aapke paas weak internet hai, jisme deriyan aur doosre ta'akhirat pai jati hain, to behtar hai ke aap is qisam ki trading se guraiz karen.