What is High-Frequency Trading (HFT)?
High-frequency trading is abbreviated as HFT and is a trading strategy that uses powerful systems to execute large number of orders in within a very short time frame, usually one second or less. Using complex algorithms, HFTs usually analyse multiple markets and execute orders based on the conclusions of the analysis and market conditions. Due to the nature of HFT trading, systems rely on the fast execution speeds, low trading costs and the STP order execution flow to ensure they achieve their maximum profit potential.
Why does Yadix Support HFT?
Yadix is unique in the way it operates, it does not take risk on its client’s trades, it does not make money when clients lose and does not have any conflicts of interests with clients, unlike most retail brokers. Instead, Yadix makes money on the small commission charged, so relies on high volumes to make higher profits. Therefore, HFT trading systems match the goals of Yadix broker.
How does Yadix Support HFT?
The specialist set up of the Yadix broker infrastructure is probably the most unique and suitable of any online Forex brokers. Each element of the brokerage is carefully thought out and created to support strategies that other brokers see as “toxic”.
Firstly, technology plays a key part in delivering speed, stability, and gateways to the very best liquidity banks. After trialling several trade servers in the United States and Asia, it was discovered that Equinix LD4, delivered the best performance in terms of speed and in terms of capabilities.
The trade server at Equinix LD4 is cross connected to multiple liquidity providers, ECNs and non-bank execution venues to ensure the lowest latency connections for traders. Furthermore, there are strategically placed datacentres around the globe that allows our clients to connect using fibre-optic technology to deliver the lowest latency connections.
Yadix STP broker uses 14 different liquidity providers to support HFT, and other types of profitable trading. The liquidity pool is made of eight banks, three ECNs and three non-bank execution venues that combine to deliver the perfect liquidity blend to support profitable traders.
Due to the depth and targeted nature of the liquidity pool, the feed experiences between 30%-40% more price ticks than most other broker online, this is a massive advantage as the more prices there are available to trade, the more likely traders are to fill at the price they want, with no gaps in markets and of course lower slippage as a result.
Further to the mentioned advantages, the Yadix Scalper account has additional liquidity providers connected, these are specialist providers who are capable of servicing strategies like HFT, Scalping and Arbitrage, making the Yadix Scalper account the most unique, targeted and efficient account in the Forex markets for HFT trading.
Read more about the advantages https://www.yadix.com/about-us/stp-forex-model/
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