// 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.

"HFT firms dominate the order book liquidity in modern equity markets."

The simultaneous purchase and sale of the same asset in different markets to profit from tiny differences in the asset's listed price.

A market condition where prices are rising or expected to rise.

A market condition where prices are falling or expected to fall.

Buying an asset with the expectation that its value will increase.

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Knowing the terms is just the start. Learning how to apply them is where the edge is found.