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.

Related

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

Opposites
trading speed and time horizon

high-frequency tradingswing trading

Multi-day position speculation

trading methodology

high-frequency tradingvalue investing

Buying underpriced stocks fundamentally

stock picking · impact investing

Family

high, higher, highest, highly, highness, frequency, frequent, frequently, frequented

Familiarity
Top 500,000
Profile
Used worldwide · Timeless · Abstract · Rated G