High-speed traders cash in on split-second advantage

The Wall Street Journal reports high-speed traders on the Chicago Mercantile Exchange are cashing in on their ability to see which way the market is moving a split second before others.

Read: High-speed traders take profits from investors

“The advantage often is just one to 10 milliseconds, according to people familiar with the matter and trading records reviewed by The Wall Street Journal. But that is plenty of time for computer-driven traders, who say they can structure their orders so that the confirmations tip which direction prices for crude oil, corn and other commodities are moving,” says the report.

Read more here.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.