Trading

High-Frequency Trading (HFT)

By Ryan Silk & Lawrence Polatchek · Reviewed April 2026 · Options Trading Glossary

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.

Related Terms

Market Maker Liquidity Payment For Order Flow Bid Ask Spread

Written by

ApexVol Research Team

Quantitative options research

All calculations use live ORATS institutional data — the same source used by professional volatility desks.

Technical reviewer

Ryan Silk, ApexVol Founder

Reviewed for technical accuracy

10+ years trading options. Built ApexVol's pricing engine, Greeks model, and IV-rank methodology.

This guide is updated as market conditions and ORATS data change. Last revised 2026-05-12. How we research →

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