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Low Latency (capital Markets)
In capital markets, low latency is the use of algorithmic trading to react to market events faster than the competition to increase profitability of trades. For example, when executing arbitrage strategies the opportunity to "arb" the market may only present itself for a few milliseconds before parity is achieved. To demonstrate the value that clients put on latency, in 2007 a large global investment bank has stated that every millisecond lost results in $100m per annum in lost opportunity. What is considered "low" is therefore relative but also a self-fulfilling prophecy. Many organisations and companies are using the words " ultra low latency" to describe latencies of under 1 millisecond, but it is an evolving definition, with the amount of time considered "low" ever-shrinking. There are many technical factors which impact on the time it takes a trading system to detect an opportunity and to successfully exploit that opportunity. Firms engaged in low latency trading are willing ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Capital Markets
A capital market is a financial market in which long-term debt (over a year) or equity-backed securities are bought and sold, in contrast to a money market where short-term debt is bought and sold. Capital markets channel the wealth of savers to those who can put it to long-term productive use, such as companies or governments making long-term investments. Financial regulators like Securities and Exchange Board of India (SEBI), Bank of England (BoE) and the U.S. Securities and Exchange Commission (SEC) oversee capital markets to protect investors against fraud, among other duties. Transactions on capital markets are generally managed by entities within the financial sector or the treasury departments of governments and corporations, but some can be accessed directly by the public. As an example, in the United States, any American citizen with an internet connection can create an account with TreasuryDirect and use it to buy bonds in the primary market, though sales to indiv ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bandwidth (computing)
In computing, bandwidth is the maximum rate of data transfer across a given path. Bandwidth may be characterized as network bandwidth, data bandwidth, or digital bandwidth. This definition of ''bandwidth'' is in contrast to the field of signal processing, wireless communications, modem data transmission, digital communications, and electronics, in which ''bandwidth'' is used to refer to analog signal bandwidth measured in hertz, meaning the frequency range between lowest and highest attainable frequency while meeting a well-defined impairment level in signal power. The actual bit rate that can be achieved depends not only on the signal bandwidth but also on the noise on the channel. Network capacity The term ''bandwidth'' sometimes defines the net bit rate 'peak bit rate', 'information rate,' or physical layer 'useful bit rate', channel capacity, or the maximum throughput of a logical or physical communication path in a digital communication system. For example, bandwidth ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Latency (engineering)
Latency, from a general point of view, is a time delay between the cause and the effect of some physical change in the system being observed. Lag, as it is known in gaming circles, refers to the latency between the input to a simulation and the visual or auditory response, often occurring because of network delay in online games. Latency is physically a consequence of the limited velocity at which any physical interaction can propagate. The magnitude of this velocity is always less than or equal to the speed of light. Therefore, every physical system with any physical separation (distance) between cause and effect will experience some sort of latency, regardless of the nature of the stimulation at which it has been exposed to. The precise definition of latency depends on the system being observed or the nature of the simulation. In communications, the lower limit of latency is determined by the medium being used to transfer information. In reliable two-way communication s ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Comparison Of Latency And Throughput
Network performance refers to measures of service quality of a network as seen by the customer. There are many different ways to measure the performance of a network, as each network is different in nature and design. Performance can also be modeled and simulated instead of measured; one example of this is using state transition diagrams to model queuing performance or to use a Network Simulator. Performance measures The following measures are often considered important: * Bandwidth commonly measured in bits/second is the maximum rate that information can be transferred * Throughput is the actual rate that information is transferred * Latency the delay between the sender and the receiver decoding it, this is mainly a function of the signals travel time, and processing time at any nodes the information traverses * Jitter variation in packet delay at the receiver of the information * Error rate the number of corrupted bits expressed as a percentage or fraction of the total sent Ban ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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. In the twenty-first century, algorithmic trading has been gaining traction with both retail and institutional traders. It is widely used by investment banks, pension funds, mutual funds, and hedge funds that may need to spread out the execution of a larger order or perform trades too fast for human traders to react to. A study in 2019 showed that around 92% of trading in the Forex market was performed by trading algorithms rather than humans. The term algorithmic trading is often used synonymously with automated trading system. These encompass a variety of trading strategies, some of which are based on formulas and results from mathematical finance, and often rely on specialized software. Examples ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Network Interface Card
A network interface controller (NIC, also known as a network interface card, network adapter, LAN adapter or physical network interface, and by similar terms) is a computer hardware component that connects a computer to a computer network. Early network interface controllers were commonly implemented on expansion cards that plugged into a computer bus. The low cost and ubiquity of the Ethernet standard means that most newer computers have a network interface built into the motherboard, or is contained into a USB-connected dongle. Modern network interface controllers offer advanced features such as interrupt and DMA interfaces to the host processors, support for multiple receive and transmit queues, partitioning into multiple logical interfaces, and on-controller network traffic processing such as the TCP offload engine. Purpose The network controller implements the electronic circuitry required to communicate using a specific physical layer and data link layer standard ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Amdahl's Law
In computer architecture, Amdahl's law (or Amdahl's argument) is a formula which gives the theoretical speedup in latency of the execution of a task at fixed workload that can be expected of a system whose resources are improved. It states that "the overall performance improvement gained by optimizing a single part of a system is limited by the fraction of time that the improved part is actually used". It is named after computer scientist Gene Amdahl, and was presented at the American Federation of Information Processing Societies (AFIPS) Spring Joint Computer Conference in 1967. Amdahl's law is often used in parallel computing to predict the theoretical speedup when using multiple processors. For example, if a program needs 20 hours to complete using a single thread, but a one-hour portion of the program cannot be parallelized, therefore only the remaining 19 hours' () execution time can be parallelized, then regardless of how many threads are devoted to a parallelized execut ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
GPS Clock
A radio clock or radio-controlled clock (RCC), and often (incorrectly) referred to as an atomic clock is a type of quartz clock or watch that is automatically synchronized to a time code transmitted by a radio transmitter connected to a time standard such as an atomic clock. Such a clock may be synchronized to the time sent by a single transmitter, such as many national or regional time transmitters, or may use the multiple transmitters used by satellite navigation systems such as Global Positioning System. Such systems may be used to automatically set clocks or for any purpose where accurate time is needed. RC clocks may include any feature available for a clock, such as alarm function, display of ambient temperature and humidity, broadcast radio reception, etc. One common style of radio-controlled clock uses time signals transmitted by dedicated terrestrial longwave radio transmitters, which emit a time code that can be demodulated and displayed by the radio controlled clock. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
CDMA
Code-division multiple access (CDMA) is a channel access method used by various radio communication technologies. CDMA is an example of multiple access, where several transmitters can send information simultaneously over a single communication channel. This allows several users to share a band of frequencies (see bandwidth). To permit this without undue interference between the users, CDMA employs spread spectrum technology and a special coding scheme (where each transmitter is assigned a code). CDMA optimizes the use of available bandwidth as it transmits over the entire frequency range and does not limit the user's frequency range. It is used as the access method in many mobile phone standards. IS-95, also called "cdmaOne", and its 3G evolution CDMA2000, are often simply referred to as "CDMA", but UMTS, the 3G standard used by GSM carriers, also uses "wideband CDMA", or W-CDMA, as well as TD-CDMA and TD-SCDMA, as its radio technologies. It can be also used as a channe ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Network Time Protocol
The Network Time Protocol (NTP) is a networking protocol for clock synchronization between computer systems over packet-switched, variable- latency data networks. In operation since before 1985, NTP is one of the oldest Internet protocols in current use. NTP was designed by David L. Mills of the University of Delaware. NTP is intended to synchronize all participating computers to within a few milliseconds of Coordinated Universal Time (UTC). It uses the intersection algorithm, a modified version of Marzullo's algorithm, to select accurate time servers and is designed to mitigate the effects of variable network latency. NTP can usually maintain time to within tens of milliseconds over the public Internet, and can achieve better than one millisecond accuracy in local area networks under ideal conditions. Asymmetric routes and network congestion can cause errors of 100 ms or more. The protocol is usually described in terms of a client–server model, but can as easil ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Options Price Reporting Authority
The Options Price Reporting Authority (OPRA) provides, through market data vendors, last sale information and current options quotations from a committee of participant exchanges designated as the Options Price Reporting Authority. OPRA is a national market system plan that governs the process by which options market data are collected from participant exchanges, consolidated, and disseminated. Participant Exchanges Current OPRA participants include: * NYSE Amex Equities (AMEX) * Boston Options Exchange (BOX) * Chicago Board Options Exchange (CBOE) * Miami International Holdings (EMERALD) * Nasdaq, Inc.(GEMX) * Nasdaq, Inc.(ISE) * Nasdaq, Inc.(MRX) * Miami International Holdings (MIAX) * NYSE (ARCA) * Miami International Holdings (PEARL) * Nasdaq, Inc.(NASD) * Nasdaq, Inc.(BX) * Chicago Board Options Exchange (C2) * Nasdaq Philadelphia Stock Exchange (PHLX) * Chicago Board Options Exchange (BATS) Acquisition and Distribution of Market Data The Securities Indu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Broker
A broker is a person or firm who arranges transactions between a buyer and a seller for a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal. Neither role should be confused with that of an agent—one who acts on behalf of a principal party in a deal. Definition A broker is an independent party whose services are used extensively in some industries. A broker's prime responsibility is to bring sellers and buyers together and thus a broker is the third-person facilitator between a buyer and a seller. An example would be a real estate or stock broker who facilitates the sale of a property. Brokers can furnish market research and market data. Brokers may represent either the seller or the buyer but generally not both at the same time. Brokers are expected to have the tools and resources to reach the largest possible base of buyers and sellers. They then screen these potential buyers or sellers for the perf ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
