Order execution in HF's
Hi,
I am very curious about how orders get executed in HF/PE...
So you come up with an investment idea, decide the amount to allocate, PM approves it, then what? Who actually presses the "buy" button ;) Do they use some specific software to route order to different brokers, and at various time intervals?
Most of them use the etrade ipad app.
In general terms, the research team comes up with the idea, the PM decides on the allocation and then instructs the trader to buy/sell x amount of shares. A variety of factors play into the level of execution aggression, ranging from a conservative VWAP algo to buy/sell the entire allocation at market.
The prime broker will usually provide a trading platform (picture an advanced etrade) with execution algos, or the order can be farmed out manually to sell-side traders.
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