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High-frequency trading (HFT’s) -Part 2: Easy explanation. [Video]

High-frequency trading (HFT’s) -Part 2: Easy explanation.

In this video, you will learn about the risks and strategies pertaining to high-frequency trading.

Chapters:
00:00 – Introduction
00:28 – Risks of high-frequency trading
01:26 – High-frequency trading strategies
02:30 – How fast is high-frequency trading?
03:15 – Is it fair to trade this fast?
04:00 – Conclusion

Risks of high-frequency trading
HFTs rely a lot on machines that aren’t infallible. Also, if there is even a minor infrastructure issue, the HFT can incur huge losses.

Traders in HFTs usually trade n large quantities and look to capture small price movements. Even a few cents of price movement can decide whether the trader wins or loses.

(Explained in detail in the video)

High-frequency trading strategies
HFT strategies are usually based on arbitrage opportunities, market-neutral strategies, or mispricing of financial assets. There are several strategies firms use to generate profits, often trying to hide their edge.

How fast is high-frequency trading?
Performing analysis for any trade might take hours, and executing the trade could take a couple of minutes. But you know what? HFTs can do all of this in a matter of milliseconds.

(Explained in detail in the video)

Is it fair to trade this fast?
Critics claim that HFTs give big players an unfair advantage over smaller firms that cannot afford to set up HFTs. The 2010 Flash Crash was even said to be caused by HFTs.

If seen purely from a legal perspective, then HFTs are valid. But regulators are worried that the superior technology gives the big players the power to manipulate markets.

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Resources for Accountants

Internal Rate of Return (IRR) | Formula | Calculation with Example [Video]

In this video on internal rate of return (irr), here we learn formula, example of irr along with significance and its drawbacks.𝐖𝐡𝐚𝐭 𝐢𝐬 𝐈𝐧𝐭𝐞𝐫𝐧𝐚𝐥 𝐑𝐚𝐭𝐞 𝐨𝐟 𝐑𝐞𝐭𝐮𝐫𝐧 (𝐈𝐑𝐑)?-------------------------------------------------------------------Internal return rate is the rate at which the net present value of the project is zero, the rate at which future cash flows are adjusted to calculate the present value.𝐈𝐧𝐭𝐞𝐫𝐧𝐚𝐥 𝐑𝐚𝐭𝐞 𝐨𝐟 𝐑𝐞𝐭𝐮𝐫𝐧 (𝐈𝐑𝐑) 𝐅𝐨𝐫𝐦𝐮𝐥𝐚-------------------------------------------------------------------NPV= 0= CF0 + CF1/(1+IRR)^1 + CF2/(1+IRR)^2 + ..... CFn/(1+IRR)^n𝐒𝐭𝐞𝐩𝐬 𝐭𝐨 𝐂𝐚𝐥𝐜𝐮𝐥𝐚𝐭𝐞 𝐈𝐑𝐑 𝐢𝐧 𝐄𝐱𝐜𝐞𝐥------------------------------------------------------#1 - Calculate Cash inflows and outflows in a standard format.#2 - Use the IRR formula in Excel#3 - Compare IRR to Discount Rate𝐈𝐧𝐭𝐞𝐫𝐧𝐚𝐥 𝐑𝐚𝐭𝐞 𝐨𝐟 𝐑𝐞𝐭𝐮𝐫𝐧 (𝐈𝐑𝐑) 𝐒𝐢𝐠𝐧𝐢𝐟𝐢𝐜𝐚𝐧𝐜𝐞-------------------------------------------------------------------------The IRR of any project shall be estimated taking into account the following three assumptions:1- The investments made are kept until the maturity dates.2 - The intermediate cash flows will reinvest itself in IRR.3 - By nature all cash flows are periodic, or the time gaps between various cash flows are equal.To know more about 𝐈𝐧𝐭𝐞𝐫𝐧𝐚𝐥 𝐑𝐚𝐭𝐞 𝐨𝐟 𝐑𝐞𝐭𝐮𝐫𝐧 (𝐈𝐑𝐑), you can go to this 𝐥𝐢𝐧𝐤 𝐡𝐞𝐫𝐞:- https://www.wallstreetmojo.com/internal-rate-of-return-irr/Subscribe to our channel to get new updated videos. Click the button above to subscribe or click on the link below to subscribe - https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1

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Crypto accounting for startups | Finance Basics with Kruze Consulting’s Scott Orn | E1339 [Video]

Subscribe to This Week in Startups on Apple: https://rb.gy/v19fcp00:00 The credible next wave of crypto startups03:17 What regulation actually applies to crypto04:32 Tax treatments on tokens and the right move for startups08:24 Recent improvements in crypto accounting infrastructure12:07 What happens if your business is paid in crypto, making the right moves with the IRS17:39 Historical comparison of airline miles & points to tokens21:25 Emerging guidance for startups regarding crypto25:22 Closing thoughtsCheck out Kruze Consulting: https://www.kruzeconsulting.com/twistFOLLOW Scott: https://twitter.com/scottornFOLLOW Jason: https://linktr.ee/calacanishttps://thisweekinstartups.com/basicsListen here:Apple: https://podcasts.apple.com/us/podcast/this-week-in-startups-audio/id315114957Spotify: https://open.spotify.com/show/6ULQ0ewYf5zmsDgBchlkr9Overcast: https://overcast.fm/itunes315114957/this-week-in-startups-audioMore from us:Twitter: https://twitter.com/twistartupsInstagram: https://www.instagram.com/twistartupsOfficial site: https://thisweekinstartups.comSubscribe to our YouTube to watch all full episodes:https://www.youtube.com/channel/UCkkhmBWfS7pILYIk0izkc3A?sub_confirmation=1Subscribe to TWiST Clips for all the best moments:https://www.youtube.com/channel/UCS7tJlcUA6PzVHEMo-X7ddg?sub_confirmation=1#startups #entrepreneurship #investing #angelinvesting #tech #news #business

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Investment Management: Industry Overview [Video]

Part of the "Investment Management Industry Fundamentals" learning path, this CPE-eligible, eLearning course (1.0 CPE) provides you with an overview of the investment management industry and an introduction to the applicable accounting guidance for investment companies in accordance with U.S. GAAP (ASC 946). As you tour the investment company landscape, the following topics will be discussed: Characteristics of an investment company, Investment strategies, General categories, Capital and legal structures, Key players (service providers), Definition of an investment company in U.S. GAAP, and Overview of applicable U.S. GAAP accounting guidance. This online course also explores the fundamental differences between U.S. GAAP and IFRS related to investment company accounting. This course is a must for anyone beginning to work in the investment management industry and serves as the starting point for our online Investment Management Industry Fundamentals course collection. Take our self-study eLearning course here: https://www.gaapdynamics.com/product/investment-management-industry-overview/ Learn more about GAAP Dynamics: https://www.gaapdynamics.com/ Check out our other online courses on the GAAP Dynamics Learning Library: https://www.gaapdynamics.com/individu... Subscribe to GAAP Dynamics to see more videos like this!