High-Frequency Trading

High-frequency trading (HFT) is a form of algorithmic trading characterized by the rapid execution of a large number of orders at extremely high speeds, often measured in microseconds or milliseconds. Utilizing sophisticated algorithms and technology, HFT firms capitalize on small price discrepancies in financial markets, making numerous trades to generate profit from minute fluctuations. While this trading strategy can enhance market liquidity and efficiency, it has also drawn scrutiny for contributing to market volatility and raising regulatory concerns regarding fairness and market manipulation.

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