At
Cross
Options
We trade based on the direct feedback of our self-made state-of-the-art algorithms, which are based on four decades of trading experience combined with the latest technological advances and machine learning techniques.
We operate based on the insights of our people, which are supported by a robust backbone of mathematics, statistics and analytics from our Digital Trading Floor.
The How and Why of Algorithmic Trading
Algorithmic trading is the practice of using predefined and mathematically calculated variables such as order volume, pricing, finance or tech trends and time-of-trade to execute automatic and computerized trading orders at high speeds and frequencies, with the specific goal to optimize trades.
While the algorithms typically use factors such as pre-coded strategies, automatic trading opportunity recognition, different types of market monitoring, historical data and stop-loss triggers, every trading company is free to code and implement the algorithms as they see fit. Therefore, the key to good algorithmic trading is always in the choice which data serves as the best possible input.
The algorithms may make fast and efficient trades, yet the success of those trades is ultimately created by the makers of the algorithms, based on their data input and analytical capabilities. This is where quantitative traders – or quants for short – come in as originators of the algorithms that execute these trades. They can have a vast variety of backgrounds, from physics studies to mathematics into astronomy degrees and even specialty skills such as meteorology to create the best possible data input.
Input =
Output
Algorithmic Trading is not only a means to optimize revenue from trades but serves as a vital ingredient to both market-making practices and providing liquidity to the international trading world, since it can be specifically coded to recognize volatility and market inefficiencies. The right kind of algorithmic trading will function as a natural way to keep markets healthy, dynamic and flowing, especially in highly volatile situations.
Cross Options is always on the lookout for new talent to strengthen our quantitative trading team. If you are interested, please contact us here.
