LATENCY ARBITRAGE TRADING

Latency Arbitrage is an imperative idea while talking about High Frequency Trading, and alludes to the way that diverse individuals and firms get advertising information at various circumstances. These time contrasts, known as latencies, might be as little as a billionth of a nanosecond, yet in the realm of rapid trading, such contrasts can be significant. So vital, truth be told, that trading firms pay loads of cash to be found nearer to exchanges’ servers– each foot nearer spares one nanosecond. Latency arbitrage happens when high frequency trading algorithms make trades a brief instant before a contending trader and after that exchange the stock seconds after the fact for a little benefit.

What is Latency Arbitrage?

This is a typical term in the realm of high frequency trading, and for the most part alludes to the possibility that organizations don’t all get a similar data about traded on an open market stocks at the very same minute in time. Some get it sooner and some later, and the distinction is known as latency. Some trading firms spend fortunes to guarantee they get the information to start with, and after that benefit from it by “latency arbitrage”. Each foot nearer you are to the trade server spares you one nanosecond. Also, they get it by basically paying the exchanges for the rights to co-situate with the trade servers. There’s likewise a section two: they permit the crude information from the exchanges that goes into the national value citation frameworks. Bottom line: they’re getting vital estimating data before the market on the loose.

How does that assistance make arbitrage preambles?

Here’s one case. A major organization is in the market to purchase a major request of a given stock. It will have algorithms execute the exchange gradually, attempting to get the best value… you know, it will take whatever’s accessible at, say, $11.20 per share, and afterward what’s accessible at $11.51, and so on. This is the place the “latency arbitrage” can come in. A HFT can see that the calculation is in the market, and basically purchase up all the accessible shares at $11.20 a moment before the foundation does. Presently the establishments calculation proceeds onward, and searches for shares at $11.51 The HFT offers all the stock it just purchased at $11.20, winning a totally hazard free penny a share, around 0.31$ correctly in pick up. Sounds little, yet gauges are that practices like this are including an excessive number of millions of dollars for every trading day, and a few billion every year. Latency arbitrage in the middle of 2 forex brokers is additionally exceptionally normal, Example there are Two forex brokers one is saxo-bank one of the biggest European banks, another is Alpari-A Russian retail intermediary, both these brokers are citing the cost of EUR/USD at 1.1007 and 1.1002, so there is basically a little crevice of 0.0005 and Saxo bank is speedier due its institutional structure.

Along these lines, a latency calculation construct robot running in light of devoted servers can without much of a stretch pick this talk and purchase on the slower merchant in expectation of getting 2-3 pips of benefits inside a small amount of second. In any case, nowadays numerous liquidity suppliers would just square your account and relinquish the greater part of your acquiring you attempt such methodology without educating them. The vast majority of the retail brokers are sponsored by liquidity suppliers who are huge banks, they never need to be tricked by their own procedure. We provide several forex trading managed accounts that work on this technique. Amid news releases these crevices move toward becoming 10-20 pips and accordingly latency trading is substantially more productive in an unpredictable market. A large portion of the brokers would utilize virtual merchants and other software’s to back off the execution of these trades.

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Commercial Loans – Going About Getting Financing – The RIGHT Way

A lesson learned.

Our company was recently asked to see what options were available to a commercial property development project that was now a multi-million dollar foreclosure. The client’s family were desperate. Many of them had invested in the doomed project.

There really is no need to explain the details of the situation that the client was in, other than highlight some of our KEY findings that in turn made it impossible for us to help these individuals get out of the foreclosure.

Project Management

Lenders like to see Project Managers (PM) involved in a commercial project that have experience as a PM. It adds credibility to the project and reduces lender risk. More importantly the PM must have experience in the field to which he / she has been asked to manage. In the example I am referring to, the self appointed PM had no business being in the PM position. This inexperience was a major contributor to the demise of the project on many levels.

The Project Plan

A project plan must be realistic. Remember, lenders see land development type projects ALL the time. If the project is too aggressive, budgets are not reasonable or the overall plan is not properly complied the lender will not give the project the consideration it may deserve. Working with a Mortgage Broker can give the PM some insight as to what project phases should come before others in order to encourage lenders to invest in the project. Not all lenders will want to finance every phase of a large project and for these types of project, different lenders may be used for each phase of the project.The PM in my example was also a “bully” and was arrogant enough to question other certified professionals involved in collecting the necessary information required by the lender. This attitude resulted in many industry professionals refusing to deal with this client. The saying “it’s a small world” can be applied to many things and this project was no exception. As the years rolled by the reputation of the PM had made its rounds within the broker and lender community, making it impossible for us to find a financing solution.

Financing Options

As a Mortgage Broker, I can testify to the value of a licensed professional helping you with your financing requirements. Knowing which lender to contact and what that particular lender will require in order for them to approve financing are key assets which the Mortgage Broker can bring to the table. I would not recommend looking for financing yourself unless you have some experience in this field.

Lenders

Lenders want to see you succeed if they have invested in your project. Things do happen and things can go wrong but two of the very worst things you can do is 1. not talk to the lender about the problem you are faced with, and 2. destroy your relationship with the lender by not paying them and / or being belligerent with them. In these tough economic times, if you have a lender financing your project, treat them with respect and do everything you can to preserve that relationship.

Documentation

There are some key pieces of information required in order for any lender to determine if a project is viable. To name a few, this information would include: A Business Plan, Complete Financial information (including quotes, forecasts and Invoices), An appraisal, A Exit strategy, Owner Bios etc. Lack of documentation can ring alarm bells for lenders and create headaches for mortgage brokers, accountants and lawyers alike.In summary

With reference to the project I am using as an example, this could have been a viable project if handled correctly from the beginning. Indeed, we had lenders who would finance such a project but it was made clear to us -NOT WITH THE CURRENT PM INVOLVED. In this case, the property was not the point of concern… the concern was the competency of the owners. So instead of them looking forward to owning a multi-million dollar asset, the client was faced with a multi-million dollar foreclosure.

Do it right, get the necessary, SKILLED, help from the start in order for your project to be successful. Competent PM’s and Mortgage Brokers are best places to start.

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Afford Your First Car on Finance Deals

If you are learning to drive or have just passed your test then you need to think about getting a car. You need to keep driving once you have learnt in order to put your new skills into practice. Buying a car on finance can be a good option for new drivers.

Why Get Your Own Car?

Too many people pass their tests but then do not have a car they can use. They do not drive for months or even years after gaining their license. This means all the skills they spent a lot of time and money learning can be forgotten. Some people even end up paying for more lessons to refresh their skills and boost their driving confidence again.

You can avoid a lot of hassle by making sure you have a car ready to use soon after you have passed your test. This means you can start driving on your own as soon as possible. All the skills you gained in your expensive driving lessons will be put into practical use and you can start building up your experience as a driver as soon as possible.Even if you cannot afford a car out of your own savings you can opt to buy a car on finance. Car finance is widely available now and this means most consumers should be able to find a product to suit their needs.

How to Get a Car on Finance

If you are thinking about getting your first car on finance then it couldn’t be easier. You can find car loans available from a large number of different providers. This market is very popular and so there are some competitive deals out there.

– You will need to do a little research first and decide exactly which products can suit your needs best.

– If you want a new car from a dealer’s showroom then you can ask around to see which dealers can offer financial packages. Many of these are very competitive and can provide an affordable way to purchase a new car.

– When you buy a car with dealer finance your transaction will be protected by the consumer rights act and you should get a warranty. This means if you are unhappy with the way your loan has managed or the car you have bought turns out to be faulty you will have some options to put things right.- If you want to buy a car on finance from a private sale then you may need to consider a personal loan. Banks can offer these types of loans that provide you with money straight into your account. This means you will be able to use this cash for whatever kind of transaction you want.

– Don’t forget when you buy a car with cash from a private sale you will not get warranties. This means if the car turns out to be faulty or damaged you will most likely have to pay for repairs yourself.

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Vehicle Finance – The Finance Process

In our last article we examined some how to evaluate whether or not you could afford to finance a vehicle as well as a couple of finance options available to the South African public. In this article we’ll examine what you’re going to need to actually apply for finance in the country.

Yes, you guessed it, in this article we’re going to have a look at what documentation and the process you’ll need to follow to get your vehicle financed.

How does financing work

The first thing that happens when you’re financing a motor vehicle is that you’ll be asked to sign an offer to purchase a vehicle. This allows the car dealer to finalise the sale and draw up an invoice for the sale.The dealer should list the vehicle’s details on the invoice in accordance with your offer to purchase. Once this step has been completed the dealer then typically faxes the order to purchase to the organisation who will finance the car.

Once the organisation has received the invoice they’ll draft a credit agreement which you will be required to sign. The agreement should outline your monthly repayments, the amount of interest you’ll be paying, as well as clearly outlining any penalties which may be incurred for late payments.

The contract will be drawn up in accordance with the information you provided the financing institution with. Whatever you do, don’t fabricate any of the information on the application form if you do you’ll be breaking the law and may be looking at some serious repercussions.

Once you’ve signed the contract you’ll need to provide the organisation financing your vehicle with the following documentation:

  1. A valid driver’s license – yes, if you’re buying a car you will need to prove that you are legally allowed to drive it
  2. Proof of salary – what you’ll need here is payslips. You may also be required to prove that you have worked with your employer for a period of at least six months
  3. A utility bill – this could be anything from an electricity bill from Eskom to a telephone bill from Telkom – what the financer is actually looking for is proof of residence
  4. Your ID document and a certified copy of it. Believe it or not, there are people out there who attempt to finance vehicles using fake credentials. Your financier will need to confirm that you are who you say you are.

Okay, so once you’ve supplied all of the required documentation you’re almost ready to finalise your purchase.

Your financier will provide you with an authority to release form to pass on to the person/dealer who sold you the vehicle. You’ll need to sign the document, which confirms that you have taken delivery of the vehicle, so that your financier can pay the dealer.

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