What are high-frequency trading (HFT) strategies?
High-Frequency Trading (HFT) strategies use powerful computers and algorithms to execute trades within microseconds.
These strategies capitalize on small price movements and high trading volumes, making profits from rapid transactions rather than long-term investments.
Some common HFT strategies include:
Market Making – Placing simultaneous buy and sell orders to earn from bid-ask spreads.
Arbitrage – Exploiting price differences of the same asset on different exchanges.
Momentum Ignition – Triggering rapid price movements to benefit from momentum shifts.
HFT is highly competitive and requires advanced technology, direct market access, and low-latency networks.
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