HFT stands for high-frequency trading, which is a type of algorithmic trading in finance characterized by high speeds, high turnover rates, and high order- to-trade ratios that leverages high-frequency financial data and electronic trading tools
. HFT uses powerful computer programs to transact a large number of orders in fractions of a second, and it is primarily a tool employed by large institutional investors such as investment banks and hedge funds
. HFT facilitates large volumes of trades in a short amount of time while keeping track of market trends, and it is commonly used by banks, other financial institutions, and institutional investors
. Some of the key characteristics of high-frequency trading include trading at high speeds, a large number of transactions executed, and short-term investment horizons
