HFT (High-Frequency Trading)
Also known as: High-Speed Trading, Algorithmic Trading, Crypto HFT
An algorithmic trading strategy that executes numerous trades in milliseconds, increasingly used in crypto markets.
High-Frequency Trading (HFT) is a type of algorithmic trading where powerful computers execute large volumes of orders at extremely high speeds—often within milliseconds or microseconds. In crypto, HFT is used by trading firms and bots to arbitrage price differences across exchanges, provide liquidity, or exploit small market inefficiencies. HFT strategies rely on co-located servers, low-latency infrastructure, and proprietary algorithms. While common in traditional finance, HFT in DeFi and CEXs raises concerns about fairness, market manipulation, and regulatory oversight. It's a key driver of volume on many centralized and increasingly, decentralized platforms.