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Investment
High-Frequency Trading
Ultra-fast computer trading that executes hundreds or thousands of orders per second to capture tiny profits.
High-frequency trading makes up a large percentage of daily volume in stocks and futures. It requires expensive technology and co-location. While controversial, HFT firms also add liquidity and tighten spreads for everyone else.
It's the fastest players in the market — they see opportunities in microseconds and act before anyone else can blink.
Real world: HFT firms place servers next to stock exchange computers to gain speed advantages of milliseconds. They profit from tiny price differences, arbitrage, and providing liquidity to the market.
💡 High-frequency trading is the lightning-fast layer of modern markets.