5/29/2023 0 Comments Zero Alternative by Luca PesaroSo at a simple level, if the model predicts a binary moment approaching, the trader can take the luxury of time to decide exactly what trades should be made in either eventuality. They are so many seconds ahead of the human traders, they might just as well have inside information when it comes to the outcomes they achieve.Īnd then we get into the financial modelling. Interestingly, the financial regulators are beginning to ask whether the fast automated trading systems give an unfair advantage to the banks and the professional traders who can afford them. Others look into mathematical modelling as a means of gaining an edge. In the real world, this would either mean they refused deals until they were more certain of the likely outcomes, or they would look for insider information. they would prefer to be able to shade the risks. They particularly don’t like being forced into taking risks they don’t want or understand, i.e. Despite the bonus culture which can encourage the pursuit of short-term gains, some traders don’t like taking risks. Yet, of course, not all fit this stereotype. I suppose if I wanted to get into the less friendly descriptions of London traders, I would call them loud, arrogant, young (sorry, to me that’s a pretty pejorative word), macho, loud-mouthed, aggressive, status-obsessed, Porsche-driving, alpha-males.
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