This report takes a look at computer trading on Wall Street, also known as algorithmic trading, quantitative trading, and high frequency trading. In the new world computers rule the markets. Just as computers and mechanisation have made many other mundane human tasks obsolete, so too has the arrival of the computer on Wall Street. It started with the transition from pit-trading to electronic trading, and now we have the transition to a world where the biggest traders are highly complex algorithms operating through the latest technology in connectivity and computing power. Like it or lump it, algo trading is here, so it is worth knowing about. Also see documentary "Quants: Alchemists of Wall Street"
Steve Kroft gets a rare look inside the secretive world "high-frequency trading," a controversial technique the SEC is scrutinizing in which computers can make thousands of stock trades in less than a second
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