High-Frequency Trading (HFT)

High-Frequency Trading (HFT) in the crypto market involves using sophisticated algorithms and powerful computers to execute numerous trades within milliseconds. By leveraging small price changes across exchanges, HFT firms capture incremental profits from each trade. Although HFT can provide liquidity and reduce bid-ask spreads, it also introduces competition in the market and may contribute to short-term volatility. Due to its speed and automation, HFT is typically accessible only to institutions or traders with advanced technological infrastructure.
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