High Frequency Trading Relies on Computer Programs to Identify Arbitrage

question 2

True/False

High frequency trading relies on computer programs to identify arbitrage opportunities and automatically trade to take advantage of those opportunities.

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Definitions:

Warehouse Cost

Expenses associated with storing, handling, and managing goods in a warehouse.

Working Capital

It is the difference between a company's current assets and current liabilities, indicating the liquidity available to fund operations.

Distributorship

A business arrangement in which one company grants another company or individual the right to sell its goods or products within a specified territory or market.

Annual Net Cash

The total amount of cash that a business generates and uses over a one-year period, after all expenditures are accounted for.