In recent years we have seen an increase in the number of day traders and short-term traders focusing on the multi-faceted field of technical analysis. While there are many different methods, in basic terms, technical trading is an analysis methodology used to forecast the future movement of stock prices. This investment strategy depends on low latency execution only trading facilities, prompt clearing services and swift settlement.
Speed and reliability
Latency is a measure of the time taken between sending an instruction and executing that instruction. While all trading services should be low latency execution, this element is especially crucial for day traders, often trading on relatively thin margins. Any delay in this area could turn a profit into a loss and have a long-term impact on trading returns. However, there needs to be a balance between speed and reliability, areas in which we are constantly looking to improve and enhance in tandem.
Prompt reporting
Traders can deal directly with market order books using our Direct Market Access (DMA) execution only service. This ensures up-to-date pricing and the ability to monitor market movements, but it also means prompt reporting of trades. A facility is essential to day traders looking to close dailypositions and avoid the risks of holding stock overnight.
This then takes onto the subject of clearing services and the need to match up clearing dates to allow traders to continue trading.
Swift settlement
Since the introduction of online trading services, and electronic settlement, the period between selling and settling an investment has been slashed. While we have offices based in the Far East and the UK, in reality, we offer our clients a global reach. To facilitate this seamless international trading, we have built a network of tier-1 counterparty relationships that allow safe custody of client assets and prompt settlement. This is an important area of our work that often goes unseen, testimony to the seamless trading process we strive to maintain.
Worldwide reach
GIS HK Ltd has built up a strong team of experts with a particularly in-depth knowledge of developing and emerging markets in the Far East. This includes the integral "Connect" system, which facilitates the purchase of Chinese listed securities via the Hong Kong stock exchange.
Recent moves by the Chinese authorities to open-up Chinese stock markets to foreign investors have been extremely well received. On the one hand, this allows Chinese-based companies to tap foreign investors for funding and also increases liquidity. On the other hand, short-term and long-term investors now have the opportunity to trade Chinese stocks. A win-win scenario?
Bringing the pieces of the jigsaw together
Low latency execution only trade services are an integral part of the day trader and short-term trader’s investment arsenal. Prompt trading, reporting and settlement ensure that funds can be reinvested quickly. In addition, due to our ongoing investment in technology, clients can access their accounts 24/7 to monitor account balances, safe custody reports and any information required for their tax returns.
While speed is of the essence in all areas of trading, this needs to be supported by a reliable framework and prompt reporting. Low latency execution services are an essential element of our business model. After all, confidence breeds confidence, allowing us to reinvest in new technology and remain competitive on charges.