Table of Contents
What skills do you need to work in high-frequency trading?
There are a few paths into HFT, but most of them require extensive technical skills in one or more of the following hard sciences such as mathematics, physics, computer science or electronic engineering. Individuals often join HFT firms via:
What is the best way to get into HFT?
Grad School – Many HFT candidates are employed straight from grad school in the relevant area. This is simply because it is easier to assess a candidate’s ability based on their doctoral work/modules, publications or (perceived) quality of their school.
Can it implement high-frequency trading (HFT) strategies?
It can implement those two things into an HFT strategy but again, they aren’t HFT-specific strategies. High-frequency trading is all about one thing: speed. You need co-location (placing your server as close to the exchange as possible) to make it work and the more milli/micro/nano-seconds you shave off, the better.
What is it like to work at an HFT firm?
Many HFT firms are relatively small companies, often with a low headcount (~20-25). This means they possess a strong entrepreneurial culture and a meritocratic mindset. Any HFT firm will be questioning what you as a candidate can bring to the table that doesn’t already exist in the firm.
What programming languages do high-frequency traders use?
Some high-frequency traders also use other languages, such as Java, Matlab and C#. High-frequency trading is not limited to use with stocks and forex markets; the concepts behind it can also be used with cryptocurrencies, such as Bitcoin.
Where are the best HFT firms located?
The top equity-based HFT firms are generally located in New York and London. Chicago is also a large hub for commodities/derivatives HFT. The good recruiters are often relatively well-versed in the domain and will be able to advise you as to whether your background is suitable.
What is the background of people involved in high frequency trading?
Since HFT is essentially a “technology sport” many will have backgrounds in computer science and electronic engineering or low-latency expertise from backgrounds in other industries such as telecoms.
How do the top HFT firms measure latency?
In fact, the “bleeding edge” of the top HFT firms measures trade latencies on the sub-microsecond scale. This latency is only set to decrease as more sophisticated customised hardware becomes available. HFT is an extremely secretive discipline. It is very hard to find out information about how HFT firms operate.
Is it possible to apply directly to HFT firms?
While direct application to such firms is possible, the tricky part is figuring out which firms actually take part in HFT! Often, if you are well-known in your particular technical niche, the firms will try and recruit you directly.