// TRADING TERMINOLOGY
What is HFT?
High-Frequency Trading; a method of trading that uses powerful computer programs to transact a large number of orders in fractions of a second.
In-Depth Explanation
HFT algorithms are designed to capture microscopic market inefficiencies and rely heavily on co-location and ultra-low latency.
Practical Example
"HFT firms dominate the order book liquidity in modern equity markets."
Related Terms
Master the language of risk
Knowing the terms is just the start. Learning how to apply them is where the edge is found.
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