High-Frequency Trading (HFT)

High-Frequency Trading (HFT) is an advanced form of trading in financial markets where powerful computers execute large numbers of buy and sell orders within fractions of a second. These systems analyze market data rapidly to identify tiny price discrepancies and act on them almost instantaneously. HFT aims to capitalize on small price movements before others can react, often providing liquidity but also raising concerns about market fairness and stability. It relies on sophisticated algorithms, ultra-fast connectivity, and high-speed data processing to gain a competitive edge in executing trades at lightning speed.