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General TradingH
High-Frequency Trading (HFT)
A form of algorithmic trading that uses high-speed technology and powerful computers to execute a large number of orders in fractions of a second. HFT firms profit from extremely small price discrepancies across markets.
Example
“HFT algorithms detected a 0.01% price difference for the same stock between NYSE and NASDAQ and arbitraged the discrepancy in under a millisecond, locking in a risk-free profit.”