High-frequency Trading (HFT)
High-Frequency Trading or simply, HFT, pertains to a classification of algorithmic trading that is engaged in the execution of huge volumes of orders that are launched within a short span of time.
Traders who delve into High-frequency trades move through trades in a speedy manner with the goal of capturing a morsel of profit that would in the long run accumulate into a substantial sum.
What HFT can do to improve market conditions through its provision of constant flow of liquidity and the removal of high bid-ask spreads. This impacts the market positively given that HFT offers rebates or reduced fees for HFT providers.