What is High-frequency trading (HFT)?
- Updated
- 1 Sep 2026
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- 1 min
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- 864
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- High-frequency trading (HFT) is a strategy characterized by sophisticated computer algorithms and high-speed telecommunication networks to execute excessive trades within milliseconds.
- This strategy aims to capitalize on minuscule price fluctuations and exploit market inefficiencies. While HFT may seem enticing due to its potential for rapid profit generation, it poses significant risks and can harm the market.
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