high-frequency trading
Millisecond market arbitrage
High-frequency trading is a method of buying and selling financial instruments using powerful computers that execute thousands of transactions per second.
The strategy exploits tiny price differences across markets, profiting from speed advantages measured in microseconds.
Critics argue it creates unfair advantages over ordinary investors and can destabilize markets during volatile periods.
Often abbreviated HFT.
- flash crashSudden, brief securities collapse
- marketVenue for trade
- market makersTraders providing constant liquidity
- securitiesTradeable financial assets
- arbitrageExploiting price discrepancies
financial markets · market manipulation · algorithmic · milliseconds · computation · front running · latency · arms race · Wall Street · hedging · liquidity · nanoseconds · split second · speed of light · financial modeling · risk management · spoofing · market volatility
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