Log-Off: Gearing up to meet the challenges of High Frequency FX trading
As financial markets move into a phase of heightened regulatory
attention in the securities industry, high frequency traders are
eager to explore new areas of opportunity. For many, foreign
exchange is the New World. Offering the deepest liquidity of any
market, along with tremendous volatility and fascinating
currency-by-currency characteristics that make each trading pair
unique, FX is a fantastic world to explore at any frequency.
However, be forewarned that unlike the New World of old, this one
is already well-populated with savvy, well-funded and
well-established participants, undisturbed stretches of golden
opportunity are rare, and success is far from assured. Some of the
challenges are common to HFT, but others are unique to FX. So lets
explore some of these, to better prepare you for your exciting
journey into HFT in FX.