High-Frequency Trading (HFT) Definition

High-frequency trading uses powerful computers and algorithms to execute large numbers of orders at very high speeds.

What is High-Frequency Trading?

HFT strategies often aim to profit from very small price discrepancies that exist for fractions of a second.

It is primarily used by institutional and professional trading firms with significant technology infrastructure.

A firm executing thousands of trades per second to capture tiny price differences is engaging in high-frequency trading.

Hawkish describes a central bank or policymaker stance that favors higher interest rates to control inflation.

A hedge fund is a pooled investment vehicle that uses a range of strategies, often including leverage and derivatives, to generate returns.

Hedging is a risk management strategy used to offset potential losses in one position by taking an opposite position in a related asset.