Prices of different types of assets fluctuate over time. For example, price differences for one single stock could be seen among
exchanges. To take advantage of this characteristic, investors start studying high-frequency transactions and successfully applying
the method in financial markets.
High-frequency trading (HFT) is an automated trading platform adopted by large commercial banks, hedge funds, and institutional
investors. It uses powerful computers to trade large numbers of orders at extremely high speed. High-frequency trading platforms
allow traders to execute millions of orders and scan multiple markets and exchanges in seconds. Basic principles of high-frequency
1. Applying sophisticated programs and extremely high speed for creating, routing and executing orders.
2. Use of co-location services and individual data feeds offered by exchanges and others to minimize network and other latencies.
3. Very short time-frames for establishing and liquidating positions.
4. Submission of numerous orders that are cancelled shortly after submission.
5. Ending the trading day in as close to a flat position as possible (that is, not carrying significant, unhedged positions overnight).
FinFine has successfully applied high-frequency trading to the cryptocurrency market. With servers located near the largest
exchanges globally along with smart algorithms, FinFine could generates approximately 20,000-10,0000 transactions a day.
Cryptocurrency market is potential for HFT companies, including FinFine.