The so-called high-frequency trading was a trading method that was born after the development of the stock market into the era of electronic trading.
Twenty years ago, a Wall Street capitalist learned by chance from a computer expert that the speed at which information spread on the Internet was different. The capitalists who were born to chase wealth quickly realized that this speed meant huge wealth in the stock market!
Therefore, they immediately gathered a group of computer experts and developed a program that could perform fast transactions. Then, with the speed of one step ahead of others, they made a lot of money in the stock exchange market!
To make an easy analogy.
For example, the price of a stock in the U.S. stock fell to 5.0001 USD (the price of the U.S. stock could be accurate to four digits after the decimal point). Then, some investors felt that the price of the stock had fallen to the bottom and wanted to buy it. To be safe, he bought the stock through the stock exchange company he opened.
What he didn't know was that there was a high-frequency trading program in the stock market that was closely monitoring all the stock orders.
When it captured the order information, it would immediately start the trading program, buy the stock at 5.0001 USD, and then quickly sell it at 5.0002 USD. Then, the order would be bought by the shareholder!
This process only took a short 10 ms, which was 0.01 seconds!
According to scientific research, the blink of an eye lasted 0.02 seconds.
In other words, in the blink of an eye, a program with a high-frequency algorithm could complete two stock transactions!
During this process, the shareholders who successfully bought the shares did not know that someone had secretly earned a difference of 0.0001 USD per share from his transaction!
Don't underestimate this 0.0001 USD!
This was just a share of profit!
If the investor had placed 10000 shares at that time, then in that 0.01 second, the high-frequency trader would have earned 1 USD from it!
The more types and quantity of stocks traded, the more money they could earn in a unit of time!
What was even more terrifying was that they could earn money every minute and second. As long as there was no problem with the system, as long as there was volume on the stock market, they would not have the possibility of losing money!
Ten years ago, during the global financial crisis, countless investors suffered heavy losses, but top investment banks like Gao Sheng and Mogen made a total of 21 billion US dollars!
The reason was that they were all using high-frequency trading programs to make money, and that was only ten years ago!
Ten years later, the number of listed companies in various countries had increased several times, and the daily trading volume had also increased several times. The trading speed of those investment banks 'high-frequency procedures had long been updated!
Nowadays, the high-frequency program trading speed within the top investment banks was already calculated in microseconds!
1 microsecond =0.001 ms =0.000001 seconds!
Just last year, Gao Sheng alone made a whopping 5 billion USD in the stock market through high-frequency trading!
If all the investment banks with high-frequency trading programs were added together, the profits would be at least 50 billion USD!
After browsing through the relevant information, Shen Lang asked,""Xiao 'ai, do you have a high-frequency algorithm?”
"No, Master. However, Xiao 'ai had found many programs named High-frequency Arithmetic in the back-end of some security companies' systems. Xiao 'ai could analyze their programs and program them accordingly!”
"Then let's learn!"
"Master, this process might take a few minutes. If you're bored, you can play some games and go online. Xiao 'ai's studies won't affect the basic functions of the smart glasses.”
"Alright, you do your thing!"
"Yes, Master!"
“……”
The waiting time was always long.
Shen Lang lay on the sofa and opened the information about the technology of their world that K had sent.
In K's world, some war weapons such as tanks and fighter jets had already become civilian equipment. Ordinary people could buy them as long as they had money. Even artillery shells could be sold in unlimited quantities!
The main reason for this was that in K's world, all the people had become soldiers. Everyone could become mercenaries, buy weapons and equipment, and then land on the destroyed planet to kill those mutated monsters!
However, it was obvious that Shen Lang could not use these 'civilian technologies' for the time being.
Hmm, I'll sell some to the country when I have the chance!
"Master, Xiaoai has completed the high-frequency algorithm modeling. Do you want to test it?”At that moment, she heard Xiaoai's voice.
Shen Lang looked at the time. It was nine in the morning. It had only been three minutes since Xiao 'ai started studying!
At the same time, the stock markets in Europe and the United States were still in the middle of the night.
The only ones that could be tested were the stock markets of Hong Kong and the neighboring countries!
As for the stock market in the mainland, Shen Lang did not consider it.
This was because the mainland's stock market implemented a T 1 trading system, which meant that they could only buy today and sell tomorrow. Most of the other places implemented the T 0 system, which supported same-day trading!
Shen Lang let Xiaoai enter the back-end systems of the security companies in Hong Kong, Japan, Korea, Singapore, and Kangaroo. He secretly opened an account on their servers that was not monitored or restricted by the system. He opened a total of ten accounts.
Then, Shen Lang asked Xiao 'ai to transfer 100,000 USD from her overseas account to each of her accounts.""Let the test begin!"
"Yes, Master!"
As soon as he finished speaking, the stock exchange interface of ten regions appeared on Shen Lang's glasses!
"The test begins!"
As Xiao 'ai's voice rang out, the transaction records on the ten trading screens started to flash non-stop. It dazzled Shen Lang!
Shen Lang immediately closed the trading interface.
What the f * ck!
If he continued to watch, his eyes would go blind!
"Xiao 'ai, report the test results in five minutes!”
"Yes, Master!"
“……”
Five minutes passed in the blink of an eye!
Xiaoai also delivered the test results at the right time!
Shen Lang saw that in just five minutes, the funds in the Hong Kong stock account had increased from 782940 Hong Kong dollars to 800000 Hong Kong dollars. If converted to US dollars, it would be 102160 US dollars!
In other words, in just five minutes, he had earned 2160 US dollars from his Hong Kong account alone!
An average of $432 per minute!
In addition to the Hong Kong account, other countries such as Japan, Korea, Singapore, and other countries also had varying degrees of income.
The largest amount was naturally from the Japanese stock account, earning a total of 3000 USD, which was an average of 600 USD per minute. The smallest stock account from the country of filipino maids earned 500 dollars, which was an average of 100 dollars per minute!
The reason for this difference was mainly related to the total market value of the local stock market and the volume of transactions!
High-frequency trading, to put it bluntly, was to earn the difference in price in this transaction!
The higher the total market value of the stock market and the more trading volume, the more money one could earn through high-frequency trading!
This was also the reason why most high-frequency trading was concentrated in US stocks!
That was because that place had the largest amount of funds and the most active trading volume in the world!
Shen Lang asked Xiao 'ai to do some calculations. In just five minutes, the total income from these ten accounts had reached 9800 USD!
This was only the principal of one million USD!
If he invested 10 million USD in a few stocks with high market value and high trading volume, the profit would probably exceed 100,000 USD!
Therefore, Shen Lang cleared the accounts of the small stock markets in the countries of the Netherlands and Malaysia. He then transferred the remaining 62 million USD from his overseas account and injected it into the stock markets in Hong Kong, Japan, Singapore, and other countries with relatively high market value and active trading volume!
Then, Shen Lang's wealth began to expand rapidly!
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