![BFI Club Learns about High Frequency Trading from Rutgers Professor]([{"url":"https://resources.finalsite.net/images/f_auto,q_auto,t_image_size_1/v1698246325/morristown/hcoqk16qmm7ztp5ktmz7/BFI1.jpg","width":256},{"url":"https://resources.finalsite.net/images/f_auto,q_auto,t_image_size_2/v1698246325/morristown/hcoqk16qmm7ztp5ktmz7/BFI1.jpg","width":512},{"url":"https://resources.finalsite.net/images/f_auto,q_auto,t_image_size_3/v1698246325/morristown/hcoqk16qmm7ztp5ktmz7/BFI1.jpg","width":800},{"url":"https://resources.finalsite.net/images/f_auto,q_auto,t_image_size_4/v1698246325/morristown/hcoqk16qmm7ztp5ktmz7/BFI1.jpg","width":1200},{"url":"https://resources.finalsite.net/images/f_auto,q_auto/v1698246325/morristown/hcoqk16qmm7ztp5ktmz7/BFI1.jpg","width":1440}])
On Tuesday, October 24, members of the Business, Finance, & Investment (BFI) Club met with Rutgers University professor Dr. Bruce Mizrach via Zoom for a discussion of high frequency trading.
Dr. Mizrach is a professor in the Department of Economics at Rutgers University specializing in Market Microstructure, Financial Crises, Behavioral Finance, and Nonlinear Time Series. He is founder and editor of Studies in Nonlinear Dynamics and Econometrics, (studying nonlinear analysis to understand economic and financial markets) and author of many economic publications.
He explained to members of the BFI Club that high-frequency trading is an automated form of trading that involves the use of algorithms to identify trading opportunities. In his discussion, Dr. Mizrach explained how large numbers of orders are executed within seconds in high frequency trading, and why traders with the fastest execution speeds are generally more profitable than those with slower execution speeds.
He traced the history of the New York Stock Exchange trading floor and explained how the vast majority of real trading now takes place at data centers in New Jersey.
Dr. Mizrach also fielded questions about a range of topics including whether he has concerns about artificial intelligence and computers displacing people on the trading floor.
