High Frequency Trading - is called and blow is one of the operative that is spoken most and is a mysterious force of the market. Four years ago, 30% of the transactions in United States were carried out through algorithmic programs. Today, more than 50% of the volume there is effected through these programs (but low in 2009 already reached 70% of the market). The last quarter of 2010 the HFT took nearly a third of the volume of the future of energy, according to a report of the CME Group, owner of the New York Mercantile Exchange (NYMEX). And the consulting firm Aite Group estimated that the operation of high-frequency trade in energy futures already is 15% of the total volume. Goldman Sachs has been the creator of these secret super algorithmic codes, which in principle should be used by them only, but a former programmer eloped with them. Several companies used this system, also companies operating own, providing liquidity to the stock markets and commodities portfolio. It is estimated that GS get 25% of your earnings through the HFT.

For this system to work properly, you need certain conditions as that servers are interconnected at few meters from the bags (bags for rent these spaces, and the bid by them is fierce, becoming strong gains) and who count on a given platform (electronic receipt of financial information, with automatic creation of orders routed in microseconds). In addition, these codes have an expiration time: while overall the HFT strategies remain through time, the micro-estrategias more shortsighted vary constantly: mathematical correlations are changing with the dynamics of the market and the codes should be adjusted. With high volatility, the relations of these strategies can last only seconds. Price movements are violent, unexplained, but each once more common, allowing traders with the necessary infrastructure (speed, execution, volume and close attention) take advantage of these movements, buying on the floor of the fall and closing a few points higher, while the price again runs the opposite way.