Archive for August 2012

Knight Capital glitch commented by ETNA Software CEO Roman Zhukov

The glitch that happened with Knight Capital’s algo trading robot can be called the tip of the iceberg. The same sort of situations happen every day, but with less dramatic effect, with many algo strategies. The main reasons for these situations are: 1. The quality assurance tests that are used 2. The need to handle…

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What is a Binary Option

Binary options (also called “Fixed Return Options,” “FRO,” or digital) are popular in the OTC market for hedging. They are also useful for speculators and for other traders to construct complex derivatives portfolios. The payoff for these kinds of options is fixed. Buyers can get a fixed amount of cash or assets in case the…

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