HFT (High-Frequency Trading)

High-Frequency Trading (HFT) is a form of advanced stock trading where firms use powerful computers and complex algorithms to buy and sell financial assets very quickly—often in fractions of a second. The goal is to capitalize on tiny price changes that happen rapidly, making profits from these small movements over many trades. HFT relies on speed, market data, and automation, giving traders an edge over slower participants. While it can increase market liquidity, it also raises concerns about fairness and stability, as it can sometimes lead to rapid market fluctuations.