Financial services companies should opt for high-frequency trading servers in order to gain a competitive edge in the electronic trading industry. In the world of finance,High Frequency Trading Enable ورود به فارکس to Forecast Stock Trends Articles speed and efficiency go hand in hand. In commercial banking and electronic trading, the turnout time o transaction is the main enemy to slow down the process.
It is no wonder that in the trading market, time works in nanoseconds. And those who are in electronic and commercial trading better know how time flies. The high-frequency trading server may act as a game-changer for finance companies.
What is High-frequency Trading Server?
High-frequency Trading Server is a type of algorithmic financial trading. It uses high-frequency financial data and electronic trading instruments that help in trading at a higher speed. It helps trading companies to have greater turnover rates thus there are higher order-to-trade ratios.
High-frequency trading (HFT) is one of the very common forms of algorithmic trading in the finance sector. Since it uses an advanced technical method and better algorithm, it proved to be rapid trading of shares. HFT uses exclusive trading techniques that assist computers to perform enter and exit positions in fractions of a second.
What do you need to have a High-frequency Trading Server?
If you are from the field of finance and planning to adopt High-frequency Trading Server. You must know the basic requirements for it. There should be a good infrastructure that has a high-speed computer with costly and upgraded hardware.
The second is “co-location” which is a high-cost facility that places trading computers in close proximity to the exchange servers. It saves time for exchanging data. The third requirement is Real-time data feeds and last but not least, the heart of the HFT that is computer algorithms.
High-frequency Trading Server types on the basis of processors used?
The type of processor used in the High-frequency Trading Server becoming a decisive factor regarding the performance. In order to analyze the minute price changes and executing trade orders, computers use the algorithm. As we know the faster we are able to run trading algorithms, the higher the chance to win over the competition.
x86 is the common name given to Intel processors. It is called so because this version of the processor is released after the original 8086 processor. For high-computing applications such as AI and data analytics workloads, x86 processors are well suited. That is those High-frequency Trading Server that is X-86-based carry out computing executions at a faster rate.
The performance of HFT-optimized servers with x86 dual processors can be boosted by the Supermicro platform. The board-level control, circuitry enhancements, and custom-tailored cooling systems of this server helps in achieving the highest sustained performance.
An ARM processor is developed by Advanced RISC Machines (ARM).it is one of a family of CPUs that are based on the reduced instruction set computer (RISC) architecture. The design of ARM processors is very simple.
It supports more efficient multi-core processing and developers also find it easy in coding. ARM-based high-frequency Trading Server increased the speed and minimize latency. As we know the faster we are able to run trading algorithms for analyzing price changes, there will greater the probability to win over the competition.
What are the applications of a High-frequency Trading Server?
In recent years, with the adoption of electronic platforms and high-frequency traders (HFTs) servers, the nature of trading has been changed. These advanced servers find applications in equity markets, Forex markets, commodity markets, and many others. By adopting this type of server they have experienced an inflow of algorithmic traders and a decline in open outcry trading.