Traders Make The Most Of Heat-Bogged, Slowed-Down Stock Trades

Ever notice that things just seem to move slower during a heatwave? Apparently, stock trades feel the heat, too. According to Gizmodo, the extreme heat in the atmosphere has slowed down the speed of radio waves. In turn, that's slowed down the speed of stock trades by a few microseconds. For the average person, the several microsecond difference means basically nothing. But for trading firms that rely on computer systems to trigger transactions, those slight loses in can mean a notable difference in outcomes. High-frequency traders have long taken advantage of the slight delays in data transfer caused by latency to make their bucks. In 2015, HFTs had a 500-microsecond advantage in receiving quote data from Nasdaq than the average trader. An analyst said different made making transactions essentially “riskless” for HFTs because “they know how both sides of the trade will come out before they ever press the video was produced by YT Wochit Business using