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Trading

High-Frequency Trading (HFT)

Ultra-fast algorithmic trading strategies

What is High-Frequency Trading (HFT)?

High-Frequency Trading (HFT) Automated trading using algorithms that execute large numbers of orders at extremely fast speeds. In options markets, HFT firms act as market makers, providing liquidity and tightening bid-ask spreads. However, they can also widen spreads during volatile periods, making execution more challenging for retail traders.

Complete Definition

Automated trading using algorithms that execute large numbers of orders at extremely fast speeds. In options markets, HFT firms act as market makers, providing liquidity and tightening bid-ask spreads. However, they can also widen spreads during volatile periods, making execution more challenging for retail traders.

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