high frequency trading
Millisecond market moves
High frequency trading is the use of powerful computers and algorithms to execute large volumes of trades in fractions of a second, exploiting tiny price differences across markets.
Traders gain advantage through speed—milliseconds matter, and firms pay premium prices to locate servers physically closer to exchanges.
Critics argue it creates unfair advantages and market instability; proponents say it improves liquidity and tightens spreads.
Often abbreviated HFT.
- algorithmicFollowing programmed steps
- millisecondsThousandths of a second
- split secondInfinitesimal unit of time
- latencyDelay in system response
- Wall StreetAmerican finance hub
stock exchange · arbitrage · servers · colocation · data center · flash crash · quants · speed · nanoseconds · liquidity · microstructure · Bloomberg · hedge funds · fiber optic · execution · front running · market makers · order book
high frequency tradingvalue investing
Buying underpriced stocks fundamentally
high frequency tradingimpact investing
Capital seeking financial and social returns
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