Algorithmic and high-frequency trading strategies: A literature review

Arbeitspapier

The advances in computer and communication technologies have created new opportunities for improving, extending the application of or even developing new trading strategies. Transformations have been observed both at the level of investment decisions, as well as at the order execution layer. This review paper describes how traditional market participants, such as market-makers and order anticipators, have been reshaped and how new trading techniques relying on ultra-low-latency competitive advantage, such as electronic "front running", function. Also, the natural conflict between liquidity-consumers and liquidity-suppliers has been taken to another level, due to the proliferation of algorithmic trading and electronic liquidity provision strategies.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: MAGKS Joint Discussion Paper Series in Economics ; No. 25-2016

Classification and Topics

• Classification: Wirtschaft ; Econometric and Statistical Methods and Methodology: General ; Optimization Techniques; Programming Models; Dynamic Analysis ; Computational Techniques; Simulation Modeling ; General Financial Markets: Other
• Subject: algorithmic trading ; high-frequency trading ; electronic market making

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Mandes, Alexandru
• Event: Veröffentlichung
• (who): Philipps-University Marburg, School of Business and Economics
• (where): Marburg
• (when): 2016

Further information

• Handle: http://hdl.handle.net/10419/144690
• Last update: 10.03.2025, 11:44 AM CET