OK
Cancel
This blog post explores the hidden mechanics of modern finance, specifically focusing on the concepts popularized by Scott Patterson's
Machine traders often have access to data and speeds that retail (individual) investors cannot match. This blog post explores the hidden mechanics of
The rise of machine traders has been facilitated by the development of new technologies, such as co-location and fiber optic networks. Co-location allows traders to locate their computers in the same physical space as the exchange's servers, reducing latency and increasing speed. Fiber optic networks enable traders to transmit data at high speeds, allowing them to react quickly to market movements. Fiber optic networks enable traders to transmit data
This automated environment has been linked to extreme volatility events, such as the 2010 Flash Crash , where the market lost 10% of its value in under 40 minutes before recovering. Is the Market "Rigged"? For those looking to download the full text,
For those looking to download the full text, "Dark Pools" by Scott Patterson is available in digital formats (PDF/ePub) through major retailers like Amazon, Apple Books, and Google Play, as well as through local library systems using apps like Libby or OverDrive.
Dark pools are private exchanges or forums for trading securities, where buyers and sellers can anonymously transact without revealing their identities or intentions. They were originally created to allow large institutional investors to trade blocks of shares without moving the market against them. However, in recent years, dark pools have grown in popularity and now account for a significant portion of all stock trades.