High frequency trading
High frequency trading (HFT) is a technology-driven trading method that provides liquidity and saves investors money by utilizing advanced algorithms to analyze multiple markets and execute orders based on market conditions to transact many orders at fractions of a second at the most efficient price
How HFT Works For You
Financial markets have always utilized professionals to act as intermediaries between buyers and sellers of products to offset short-term supply-demand imbalances, find the fair price and provide continuous prices to investors.
From the specialists on the floor of the New York Stock Exchange to locals in colorful jackets in futures markets, different markets have had a variety of professional intermediaries.
Today, the important role played in the last century by human traders is filled by automated traders at HFT firms. The speed and efficiency of computerized trading allows the savings community, including pension funds and 401k holders, to benefit from the least expensive financial intermediary in history, savings hundreds of millions of dollars a year collectively.
Saving Investors Money
Large and small investors alike save hundreds of millions of dollars as a result of HFT continuously surveiling the market and aligning pricing across venues, delivering cheapest cost of trading intermediaries in history. HFT firms function like the “Amazon” of trading intermediaries.
Improving Market Quality and Stability
The use of HFT technologies facilitate markets quickly and can provide continuous quotes in both calm and crisis markets.