The major types of electronic traders include: Electronic news traders: These traders profit based on news. They subscribe to high speed electronic news services. They process news releases extremely fast and place trade based on their analysis. Electronic dealers: Like other dealers, electronic dealers also earn profits through their bid-ask spreads. However, at first signs that prices may move against their inventory position, they immediately take liquidity by executing on the opposite side and reduce their exposure. Electronic arbitrageurs: These traders monitor multiple markets to look for arbitrage opportunities. Electronic front runners: These are low-latency traders who use AI methods… Read More
