High Frequency Trading (HFT) involves the concept of “Order Types”, which signals a trader to enter or exit a position. According to Reuters, Order types can reach an estimated 2,000 variations as a fully electronic market and more than 50 trading venues have multiplied the possibilities of how, when and with whom to trade.
Clearly, the rules of the game are redefined by the Order Types and their correct implementation in the marketplace. Amidst a long list, we touch upon some of the popular ones, frequently used by HFT practitioners. The following Infographic shows 4 HFT Order Types, and examples when a buy or sell order is placed.
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