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Bridge over ocean
1 May 2014 Financial Analysts Journal Volume 70, Issue 3

High-Frequency Trading and Its Impact on Markets

  1. Maureen O’Hara

At the 2013 CFA Institute Financial Analysts Seminar, held in Chicago on 22–25 July, Maureen O’Hara discussed a new market paradigm: Trading has become faster, and market structure has fundamentally changed. In today’s market, high-frequency traders (HFTs) act on information revealed by low-frequency traders (LFTs). To survive, LFTs must avoid being detected by predatory algorithms of HFTs. LFTs can thrive by adopting trading strategies appropriate to the high-frequency trading world.

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