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A high frequency trade is a type of investment in which the trader takes a yes or no position on the price of a financial asset, and the resulting payoff is all or nothing. Because of this, high frequency trading can be easier to understand and trade than traditional financial trading.
High frequency tradies are cash-settled as European-style options, meaning they can only be exercised on the expiration date. If, at expiration, the position settles in-the-money, the buyer or seller of the trades receives a pre-specified dollar amount. And if the trades settle out-of-the-money, the buyer or seller receives nothing. This provides a known upside (gain) or downside (loss) risk assessment. Unlike traditional trades, high frequency trades provide full payout no matter how far above (or below) the position settles from the strike price.
Despite the term "all or nothing", depending on the actual trading platform, "nothing" can actually mean "something". This means that at expiration time the owner of the transaction may actually get a certain payout amount, even if the position expired "out of the money".
1. Learn the two outcomes of high frequency trading.
A high frequency trader needs to anticipate the expected direction of the price movement of the underlying asset. Within most platforms, the two choices are referred to as Put and Call. Put is the prediction of a price decline, while Call is the prediction of a price increase. Unlike in traditional trading, knowing the magnitude of the movement is not required. Instead, one must only be able to correctly predict whether the price of the chosen asset will be higher or lower than the strike price. If the investor has an opinion about an underlying asset and wants to place a trade, s/he can trade high frequency.
2. Decide your position.
Evaluate the current market conditions surrounding your chosen asset and determine whether the price is more likely to rise or fall. If your insight is correct, on the expiration date, your payoff is the settlement value of your contract. The return rate on each winning trade is decided upon by Glenmore Investments and this amount is always declared upfront.
• High frequency trades are generally simpler to trade because they require only a sense of direction of the price movement of the underlying asset, whereas traditional investments require a sense of direction as well as the magnitude of the price movement. No actual assets are ever bought or sold, so the selling of shares and stop losses are not part of the process.
• High frequency trading always has a controlled risk to reward ratio, meaning the risk and reward are predetermined at the time the contract is acquired. Traditional investments have no defined boundaries of risk and reward and, therefore, the gains and losses can be limitless.
• High frequency trading provides nearly all the possible trading and hedging strategies available via traditional trading. Both fundamental and technical analysis strategies can be used to increase the accuracy of price movement prediction.
• Unlike a traditional investment, the payout amount is not proportional to the amount by which the position ends up in-the-money. As long as a high frequency trade settles in-the-money by even one tick, the winner receives the entire fixed payoff amount.
• High frequency trades offer contracts with short-term durations. In some markets, high frequency trading contracts close multiple times throughout the trading day, while others may last as long as a year. Some brokers provide contract times of as short as thirty seconds. This provides the trader with several investment opportunities and flexibility as markets change over time.
A high frequency trade will always offer a fixed return. High frequency trading typically returns 70-85% when a trade expires “in the money” and on certain trades (subject to terms & conditions), refunds 0-10% when a trade expires “out of the money”.
For example: On an invested sum of 100$ an expiry “in the money” will return 170$-185$ to the client. Should the trade expire “out of the money” then Glenmore Investments will reimburse 0$-10$ to the client’s balance (subjected to terms & conditions).
The strike price of a trade is determined by Glenmore Investments based on live pricing feeds supplied on the market.
The expiry time is the time and date that a trade expires. The expiry time displayed to clients automatically adjusts according to the GMT timezone.
A purchased trade may be closed prior to the normal expiry time of the trade up to the “no more trades” time. Closing a trade is available within several minutes from the purchase time. (Note: close functionality may not be active at all times and for all trades).
What is the difference between "In the money" and "out of the money" expiries?
A trade which expires “in the money” is one which at expiry the condition on the trade is fulfilled. The following are examples of trades expiring “in the money”.
• A High/Low instrument where a high trade expired above the strike price or a low trade expired below the strike price.
• A One Touch instrument where a touch trade expired due to the strike price being reached, or a no-touch trade where the expiry time was reached without the strike price being reached.
• A Boundary instrument where an inbound trade expired between the strike prices, or an outbound trade which expired below the lower strike price or above the upper strike price.
A trade which expires “out the money” is one which at expiry the condition on the trade is not fulfilled.
This scenario is referred to as “at the money” expiry. In such a case 100% of the initial investment will be returned to the client’s balance.
To invest, first set the investment amount in the “amount” box (top right of the trading chart), then choose between "call" or "put" options for a given underlying asset. Clicking on the call/put button will open an investment sheet, where you will see the details of the action you are about to take and will be asked to approve its execution. The selection may be canceled by clicking on "X" at any time before approval of the transaction. Please note that the rate keeps updating in the investment sheet.
A minimum investment amount for a single trade is typically 25 USD/EUR/GBP. This amount varies between countries and for different currencies.
There is no limitation placed on the number of trades that can be purchased at any particular time.
The trading currency is selected as part of the registration process. You can open an account in USD, EUR or GBP. Please note that the currency selection cannot be changed after funding the account.
The minimum deposit to start trading is 250 USD/EUR/GBP or the local equivalent in one of the available trading currencies.
No deposit is required in order to complete the registration process.
• A client can invest with Glenmore Investments using multiple methods, such as credit card, debit card, wire transfer and other methods.
• Credit Cards:
We currently support Visa, MasterCard, Maestro and Diners. We make it super simple and secure to add funds to your account at Glenmore Investments. You can credit money instantly using your credit card to your account by using the Deposit section of the client area.
• Wire Transfer:
Wire transfer is often your best choice, bank wire transfers are immediate, reliable, and safe.
• You can deposit funds with a wire transfer from your bank. The minimum amount for a wire transfer is 250 USD/EUR/GBP. Once you have wired your deposit it will take up to five business days for our bank to receive the funds. To speed up this process, you can send us the Swift Confirmation Receipt issued by your bank at the time of your wire transfer to [email protected]. Once we have this document we can look up your deposit and add the funds more quickly so that you can begin trading.
For details of how to make a withdrawal please refer to our withdrawal page. Requests for withdrawal will be processed by Glenmore Investments, the initial deposit will go back to the original source of funds while any profits will be wired to a bank account of your choice as long as it is on your name.
A withdrawal process can take 5-10 business days, depending on your bank credit card company.
The minimum withdrawal amount is 100 USD/EUR/GBP. Withdrawals are subject to a $35 admin fee per transaction.
Yes you can, however, since a withdrawal request can take up to 10 business days to process it is vital to contact client support ([email protected]) and your account manager in order to expedite the withdrawal cancellation.
It is very simple, just go to the following Registration link. Fill your personal information, set a personal password and submit.
Shortly after, you will be contacted by an account manager in order to complete your registration process.
If there is a change in your personal information (e.g. address, phone number, e-mail address etc.) please contact client support at: [email protected] with the new details.
Account balances can be viewed at the top of each page within the site or within the “My Account” section, available to registered users only.
Green indicates a higher rate than the previous trading day's closing level. Red indicates a lower rate than the previous trading day's closing level.
All data transmitted between your computer and Glenmore Investments is securely passed over the Internet using 128bit SSL encryption certificate provided by Thawte, used by the top financial companies and banks in the world.
Glenmore Investments Interactive Academy attributes it’s market depth and knowledge base to many years of acquired knowledge and experience. From the trading floors of varied financial institutions. The Interactive Academy’s Trading Central is registered with the U.S. Securities and Exchange Commission (SEC), as an official Investment Advisor.
High frequency trading involves significant risk. We strongly advise that you read our Terms & Conditions. Although the risk when trading high frequency trading is fixed for each individual trade, the trades are live and it is possible to lose an initial investment, particularly if a trader chooses to place his entire investment to a single live trade. It is highly recommended that traders choose a proper money management strategy which limits the total consecutive trades or total outstanding investment.
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