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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Land Contracts – The New Way to Finance Real Estate Investing

In this article we’ll take a look at lending practices and the use of land contracts in real estate investing as an alternative to traditional funding.

You do not have to look far to find professionals in the real estate and financial industries declaring the real estate funding process badly damaged. The proof is everywhere. The robo-signing debacle and the over subscription of worthless mortgage related securities has fueled foreclosures and contributed to the resulting industry meltdown. It has been like watching a train wreck at half speed.

If you are a real estate investor trying to develop of portfolio of properties with equity and strong cash flow, how can you proceed when the process for borrowing is in a shambles right now? One option is to utilize land contracts.What is a land contract? A land contract is simply an agreement between a buyer and a seller. The seller agrees to give the title to the buyer when they have met specific conditions such as repairs, payment schedules, occupancy, payment of outstanding utility or tax bills, etc.

There is no set in stone land contract. Each one varies depending on the property and circumstances of the buyer and seller. For example, a contract can be structured so the buyer makes payments on the property, and the seller gets the depreciation deduction from a tax standpoint. At some point in the future, when all the conditions of the land contract are met, the seller gives the title to the buyer. The traditional escrow process is used to facilitate this arrangement.

For private real estate investors that don’t want their deals stuck in the financial lending quagmire, land contracts are becoming increasingly popular. A land contract is beneficial to the seller because they don’t transfer the title until the buyer successfully fulfills all the terms of the contract.

Land contracts can be used in one of two ways, as a financial investment or a RE investment. If you hold or own a land contract, you can sell it to another investor. If you purchase a contract, you can typically get it as a discount. Let’s say you purchase a $50,000 contract for $40,000. You immediately have $10,000 or 20% built-in profit. What’s not to like about that!If you’re willing to take a bigger risk, you can purchase a contract at an even bigger discount. Maybe the payment period is shorter or the tenant is behind with the rent payments. There are many different issues that affect the discount and return on a land contract.

And now I would like to invite you to learn simple real estate investing and financing strategies for quickly generating dependable passive income. I’ll show you cutting edge strategies that work in today’s environment, strategies I’ve used to purchase and sell over 1,300 properties. Take action and get access to these creative real estate strategies and a blueprint for earning additional monthly income.

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Growing Sales by Using a Third Party For Your Customer Finance and Leasing Program

Many firms wish to offer a customer finance program but do not have the necessary skills and capital to offer such a service. A properly run customer finance program can increase sales, improve cash flow by 100%, eliminate customer objections, and also allow your customers to work within their budget and approval cycles. Those reasons are clearly powerful for any firm considering a customer financing strategy.

Most customers know that some of the world’s largest corporations such as IBM, GM, CATERPILLER, etc offer very robust customer finance programs for their customer base. They offer such a program to ensure that they can reach maximum customer penetration within their markets – they don’t want to lose a sale just because the customer was unable to finance a product or service.

Companies who wish to start a customer finance program should explore the resources of an experienced third party. This, as stated previously ensure the program will have the technical, credit and financial backing that such a program provides.The major reasons that customers look at using a third party can be summarized as follows:

No in house credit and leasing and documentation expertise

Lack of funds for a large program

Desire not to take credit risk inherent with long term financing

They feel they are not large enough to consider such a program.

Leasing and equipment financing is a highly specialized area – it also requires significant accounting skills with respect to the types of leasing that is offered. Firms considering such a program should ensure that they have the ability to offer lease to own leases (capital leases) operating leases (customers use but don’t own the equipment) and also short term rentals if that is applicable to their product or service.

Such a customer finance program requires a significant amount of capital – as such it makes sense to utilize the resources of a third party with unlimited ( or close to unlimited!) capital. Some companies might find that their borrowing power to support such a program does not allow them to offer competitive rates, terms, and structures.

Some firms that consider customer finance and leasing programs do not wish under any circumstances to take back product at the end of the lease. They want to sell more new product!! That reason alone drives many firms to utilize the services of an experienced third party.There are a number of different third party ‘types ‘that a company can partner with. These include leasing intermediaries, banks, and other independent lease firms. A leasing intermediary, experienced in the industry, is quite often a great choice as they have significant expertise in a variety of industries, they have access to unlimited funding through their funding sources, and they are not constrained by deal size or credit quality of any one individual deal. They also can assist the customer in making sales calls to complete sales and financing scenarios.

A customer finance program, offering lease financing to your customers is a powerful sales and marketing tool, and within the reach of all firms who wish to increase revenue and profits by offering financing in their sales ‘ toolkits’.

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Personal Finance Saving Options

There are many options available to one when he or she begins to think about creating a personal finance strategy to help meet their financial goals. Suggested by many is creating a personal strategy to meet financial goals while growing one’s wealth. There are many opportunities offered by banks and credit unions available and an understanding of them will help when one decides to look for one that meets his or her special needs.

Savings accounts have proven crucial when it comes to successful personal finance and although traditional simple savings accounts can offer peace of mind, they do not offer the rewards of other types of savings options. One aspect a person may consider is the investment into CD’s. CD’s are a great way for a person to invest their money into the banking system with less risk than that when one invests his or her money into other avenues.CD’s are for people who can afford to invest their money over a given time period. After this specific time period, one can cash out their CD for its value along with the interest it has accrued. CD’s normally have a time period until they meet their maturity. One will invest a specific amount of money, normally at least five hundred dollars, and gain interest on that investment which is typically higher than traditional simple savings accounts.

CD’s usually have an investment of six months, nine months, twelve months, and some even five years of a period where one’s money is invested. Normally, the longer amount until maturity will offer one a higher percentage yield upon cash out. One should note that although these offer better returns over simple savings accounts and money market accounts, the rules are more strict than they are for the other more traditional savings accounts.

When one invests in CD’s he or she is not allowed to make any withdrawals of that money until it reaches maturity. This can be limiting for some in the fact that traditional simple savings accounts will allow withdrawals at basically any time in case of an emergency. However, this is not the case when dealing with CD’s. CD’s must mature before you are able to cash them out. When you invest in a CD, the money no longer is yours until the time period has been realized and although if there is any emergency and you must withdraw money, you will be penalized far greater than with other savings accounts and may actually lose money depending one the terms and conditions are with the bank that you use.No matter if you choose a CD, money market account, or traditional simple savings account, one must always be sure to read the fine print in the terms and conditions. Make sure you understand the terms clearly and you know exactly what the positive and negative aspects are before sticking your money anywhere.

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