Definition of High-Frequency Trading (HFT)
An algorithmic trading strategy that uses powerful computers to execute a very large number of trades at extremely high speeds. HFT firms operate on microsecond timeframes.
At a glance
Term
High-Frequency Trading (HFT)
URL slug
high-frequency-trading-hft
Category
Trading styles
Short answer
An algorithmic trading strategy that uses powerful computers to execute a very large number of trades at extremely high speeds.
Deep dives
Full A–Z glossary
Example
Apply the definition: restate “High-Frequency Trading (HFT)” in one sentence tied to your next trade (symbol, direction, size, stop). If you cannot, re-read the definition above.
Common mistake
Common mistake: using “High-Frequency Trading (HFT)” as loose slang while your broker/platform specification defines it more narrowly.
Professional tip
Tip: bookmark this “High-Frequency Trading (HFT)” page and reopen it when reading broker specs so definitions stay consistent.
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FAQ
An algorithmic trading strategy that uses powerful computers to execute a very large number of trades at extremely high speeds.
Knowing the precise definition of “High-Frequency Trading (HFT)” prevents platform and broker-spec mistakes—a common source of size and cost errors.
Common mistake: using “High-Frequency Trading (HFT)” as loose slang while your broker/platform specification defines it more narrowly.