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High-frequency Trading (HFT)

High-Frequency Trading or simply, HFT, pertains to a classification of algorithmic trading that is engaged in the execution of huge volumes of orders that are launched within a short span of time. 

Traders who delve into High-frequency trades move through trades in a speedy manner with the goal of capturing a morsel of profit that would in the long run accumulate into a substantial sum.

What HFT can do to improve market conditions through its provision of constant flow of liquidity and the removal of high bid-ask spreads. This impacts the market positively given that HFT offers rebates or reduced fees for HFT providers.

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