The Trading Firm who Has Only One Day Of Losses In Over Three Years

Vitru Financial has captured the attention of the financial market, and nearly everyone wants to know the secrets to their nearly flawless success. In their own initial public offering two weeks ago, Virtu Financial, a high frequency trading firm based out of New York, exposed its trading records to reveal that in over three years of trading equities and currencies they have had only one day of losses. To say that the financial world has decided that they deserve a little attention for this feat is the understatement of the year so far.

High frequency trading is something of a controversial means of financial trading. Many outside the industry have a long list of complaints aimed at the industry for its possible role in the 2008 mortgage crisis in the US, and the assumption that use of computers and algorithms lead to risky dealings. But this success story places some much needed light on this type of trading and the success that can some with it. Virtu Financial has set itself up to be a bigger player than it already is, and attention is going to be put squarely on them, their leadership, and the practices that made this all possible.High frequency trading relies on the idea that assets are constantly in flux, coming to and going from the trader all the time. Carefully plotted algorithms determine when to buy and sell with a frequency that moves trades at a rate that is a fraction of a second, far faster than any one person could. Virtu Financial and every other high frequency trading firms exist with the premise that the speed at which they move the market drives profitability all around because moving securities to and from buyers at a blinding speed increases buys and sells at a rate other methods could not.

Those who criticize high-frequency traders claim that a trading firm that operates with such risk in mind, moving securities at such a high volumes places billions at risk. This is one firm that debunks that fear…for the moment. “The chart below illustrates our daily Adjusted Net Trading Income from January 1, 2009 through December 31, 2013,” Virtu wrote in their IPO. “As a result of our real-time risk management strategy and technology, we had only one losing trading day during the period depicted, a total of 1,238 trading days.” You can find all of Vitru’s trading results by following the link and reading the IPO for yourself.

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