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.

Related

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

Opposites
trading speed and holding period

high frequency tradingswing trading

Multi-day position speculation

decision-making methodology

high frequency tradingvalue investing

Buying underpriced stocks fundamentally

market philosophy and approach

high frequency tradingimpact investing

Capital seeking financial and social returns

dollar-cost averaging · long-termism

Family

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

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