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Published On: Mon, Feb 11th, 2013

High-Frequency Trading (HFT)

The use of high speed, advanced technical systems and algorithms to trade financial securities automatically, on a rapid basis.

HFT involves positions being held for very short time frames, often for just fractions of a second and they are typically used to take advantage of small price movements. Although only small percentage points are normally made on each trade, due to the volume of trades instructed, huge profits are often realised.

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About the Author

- Marcus Holland has been trading the financial markets since 2007 with a particular focus on soft commodities. He graduated in 2004 from the University of Plymouth with a BA (Hons) in Business and Finance.