This page contains a list of roles in the HFT industry that I am familiar with.
- High-Frequency Trading: HFT is a type of algorithmic trading in finance characterised by high speeds, high turnover rates, and high order-to-trade ratios that leverages high-frequency financial data and electronic trading tools. So, what is HFT? HFT uses proprietary trading strategies carried out by computers to move in and out of “positions” in seconds or fractions of a second.
- Proprietary Trading: Proprietary trading occurs when a trader trades stocks, bonds, currencies, commodities, their derivatives, or other financial instruments with the firm's own money in order to make a profit for itself. Proprietary trading can create potential conflicts of interest such as insider trading and front running.
- Market Maker: A market maker or liquidity provider is a company or an individual that quotes both a buy and a sell price in a tradable asset held in inventory, hoping to make a profit on the bid–ask spread, or turn. The benefit to the firm is that it makes money from doing so; the benefit to the market is that this helps limit price variation (volatility) by setting a limited trading price range for the assets being traded.
- Algorithmic Trading: Algorithmic trading is a method of executing orders using automated pre-programmed trading instructions accounting for variables such as time, price, and volume. This type of trading attempts to leverage the speed and computational resources of computers relative to human traders; along with overcoming human psychological biases when it comes to decision-making.
- Quantitative Trader: “Buy low, sell high, trade fast!”
- Qualities:
- Calm under pressure
- Mental math
- Initiative, proactiveness and entrepreneurial mindset
- Competitive but co-operative attitude
- Immediate frequent decision maker
- Ability to handle stress
- Interest in option trading and financial markets (demonstrated)
- Experience in trading (real or simulated)
- Ability to take fast decisions under pressure
- Understanding of risk and reward patterns
- Ability to spot arising opportunities and the assertiveness to seize them.
- Skills:
- Probability and Statistics
- Game Theory
- Coding
- Trade Operations Analyst:
- FPGA Engineer:
- Quantitative Software Engineer:
- Equity Research Analyst