what is high frequency trading

High-frequency trading (HFT) is a type of algorithmic trading that uses powerful computer programs to transact a large number of orders at high speeds. It is commonly used by banks, financial institutions, and institutional investors to execute large batches of trades within a short period of time. HFT uses complex algorithms to analyze multiple markets and execute orders based on market trends. Traders with the fastest execution speeds are generally more profitable than those with slower speeds. HFT provides the market with liquidity, but it can result in major market moves and removes the human touch from the equation. HFT does occur in the cryptocurrency market and works the same way as in other markets. High- frequency trades can be as fast as 10 milliseconds or even less to execute a large batch of trades.