The Joint Dynamics of Liquidity and Volatility in Explaining Fast Market Movements

Aug. 14, 2011 - PRLog -- Liquidity is the possibility to maneuver around the market, i.e., buying or selling with any quantity of financial product (stocks, bonds, etc.). Volatility is the average movement in any given period of time; the higher the average, the higher the volatility. The relationship between both of these concepts is explained by Mr. Edgar Perez in The Speed Traders, An Insider's Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World (http://www.thespeedtraders.com), hardcover recently published by McGraw-Hill Inc.

As mentioned in The Speed Traders, "Volatility and liquidity can have a very inverse relationship. The more you have of one, the less you have of the other. And right now we have a lot of volatility. But liquidity will return to the market and will give us some certainty as far as what we’re doing. If the market feels at equilibrium, you won’t be able to do these kinds of high frequency trades. Being able to model behavior on the fly, knowing where the market is going with some kind of certainty, that’s the most fascinating part of the future of high-frequency trading. You want to be able to identify those moments where the market is about to turn, where that possibility is there. And be the first one to really start hitting the bid.”

The Speed Traders, published by McGraw-Hill Inc., is the most comprehensive, revealing work available on the most important development in trading in generations. High-frequency trading will no doubt play an ever larger role as computer technology advances and the global exchanges embrace fast electronic access. The Speed Traders explains everything there is to know about how today's high-frequency traders make millions—one cent at a time. In this new title, The Speed Traders, Mr. Perez opens the door to the secretive world of high-frequency trading. Inside, prominent figures drop their guard and speak with unprecedented candidness about their trade.

Mr. Perez is widely regarded as the pre-eminent networker in the specialized area of high-frequency trading. He has been featured on CNBC Cash Flow (with Oriel Morrison), TheStreet.com (with Gregg Greenberg) and Channel NewsAsia (with Lin Xue Ling), and engaged as speaker at Harvard Business School’s 17th Annual Venture Capital & Private Equity Conference, High-Frequency Trading Leaders Forum 2011, CFA Singapore, Hong Kong Securities Institute and Waters USA 2011, among other global forums.

Mr. Perez was a vice president at Citigroup, a senior consultant at IBM, and a consultant at McKinsey & Co. in New York City.  Mr. Perez has an undergraduate degree from Universidad Nacional de Ingeniería, Lima, Peru (1994), a Master of Administration from Universidad ESAN, Lima, Peru (1997) and a Master of Business Administration from Columbia Business School, with a dual major in Finance and Management (2002). He belongs to the Beta Gamma Sigma honor society. Mr. Perez resides in the New York City area and is an accomplished salsa and hustle dancer.

Mr. Perez is one of the great business networkers and motivators on the lecture circuit; he is available worldwide for the following speaking engagements: Present and Future of High-Frequency Trading, The Real Story behind the "Flash Crash", Networking for Financial Executives, and Business Networking for Success.

# # #

The Speed Traders (http://www.thespeedtraders.com), Mr. Edgar Perez, founder of the prestigious business networking community Golden Networking (http://www.goldennetworking.net), opens the door to the secretive world of high-frequency trading (HFT).