1. High Frequency Trading
Chapter One Supplement

2. What is it? HFT Fast trading Server is close to exchange Expensive
Algo trading
Auto market maker
Program Trading
Fast trading
How quickly
By micro seconds
Fast program and fast brain
Server is close to exchange
Expensive
Fast computer
Fast programs
Intelligent people that create it.

3. How does it work? Imagine you want to buy 1000 shares of WMT or GOOGLE
Your order could be revealed by HFT programs
HFT buys out the whole market in a split of second
Sell to you and other manipulated price

4. WHY investment banks invest in HFT?
Lots of trades and huge money from liquidity rebate
Does HFT provide liquidity and real service?