Thursday 20th October 2016                 Change text size:

Investment term of the day: high frequency trading

Photo: doctor-a via stock.xchng

High frequency trading, or HFT, is the use of algorithms and other sophisticated technology to trade stocks, shares and securities on a rapid basis.

Trades can be made in micro-seconds (one millionth of a second). This means those with the fastest technology are likely to be the most profitable.

Investopedia definition.

Wikipedia page.

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