How Much would you pay for speed?

Discussion in 'Trading Software' started by SitrusTrader, Mar 14, 2004.

  1. How much would you pay for a platform that is faster in data and execution than any other platform?

    Fort he poll, i mean, how much extra (premium) would you pay over the mean rate.

    Can we assume that the mean platform cost is $250? (order entry, the works)

    Also, how important do you think speed is for your trading?
  2.'s according to what Nitro would charge. :)

    Michael B.
  3. nitro


    The equation for how much is simple:

    1) Get a PTP T1 connection to broker, or even better, the exchange.
    2) Optimized software that puts the order on the wire as fast as possible.

    The cost of 1 is well known. The cost of 2 is less well known, but also within a fraction of a milli second even in badly written software.

  4. There is a big problem with your #1. What if your broker themselves is slow. And to what exhcange can you get a PTP? You need to get it to exchange + all the ECNs. So you need a broker that is super fast. And that is what, is also implied with my questions. The speed on all levels.
  5. nitro


    I guarantee you. Any broker that takes you as a customer and they understand you want a PTP T1 to them is not "slow." People that claim their broker is slow are with someone like Ameritrade.

    There are scores of brokers in Chicago that will set allow you to run a PTP T1 to them to trade eminis. As to exchanges, the MERC will allow you to have your servers at the "exchange." There are also OES lines that will allow you to _almost_ have direct lines to the all of the regional equity exchanges - the difference might be an extra 5-10 MS to get from the OES broker to the actual exchange, in some cases less.

    If you have money and do volume, there is almost nothing people will not do for you.

  6. Define "faster" - 1ms, 5ms, 10ms, ...???
  7. Enormous amount.

    I am willing to pay 90% of my profit if you give a platform faster enough for me to see what will happen in the next ten seconds.
  8. Well faster can't be defined in absolute terms. Only % wise. Or rather scale wise compared to everyone else.

    So let's say its either 25% faster than what you have now,
    Or you are moving up by 50% on the scale of where are you compared to everyone else. Now, don't you want to be on the front of that scale?
  9. Your percentages are meaningless.

    If "moving up by 50% on the scale" (whatever you're considering the "scale" to be) means my order gets entered into Globex a mere 1-2 milliseconds ahead of someone else, then this "faster" platform isn't worth a whole lot (at least not to me).

    You'd have to better quantify and define (in absolute terms) what you're calling "faster" for anyone to draw a rational conclusion of what it might be worth to them.

    So what's the platform you're selling??
  10. why not just trade ES/NQ - get a globex terminal, pull quotes from it and enter trades directly into the exchange.
    #10     Mar 15, 2004