Comment on What is a stock trading bot called, and is there a way I can make/get my own?
breadsmasher@lemmy.world 10 months ago
This is sort of how High Frequency Trading firms - they have a system of algorithms to quickly buy and sell shares for profit. But they can do it a financial scale which makes sense. Like another commenter said, doing it for pennies will just be a net loss after commission and fees.
You also need to get approval (forgive me I can’t recall the exact detail) for day trading - buying and selling of a stock within (I think) a 3 day period (or maybe intraday). Some platforms will allow you to do it a couple of times but then restrict you until a few days have passed before you can trade agaib
SidewaysHighways@lemmy.world 10 months ago
I picked up a high frequency trading server for free off a friend of mine and that machine is a total beast of a computer. So apparently it may take a lot of horsepower to perform at that level
slazer2au@lemmy.world 10 months ago
There is a lot of analytics that happen with HFT also I would say there hardware would prioritise low latency parts to shave nanoseconds off any trade.
surewhynotlem@lemmy.world 10 months ago
FPGA, gigantic in memory caches, and ten gig fiber back channel connections to the exchange server in the next rack over.
We are hopelessly outclassed.
slazer2au@lemmy.world 10 months ago
Fun thing, in Australia in order to connect to the Australian Stock Exchange you must have a minimum of 160M of fibre cable. So being in the rack next to them is not an advantage.
When they can make millions extra a year, spending 500K on a server is nothing.