High Frequency Trading

The term high frequency trading refers to a trading practice in which computer programs are used to perform multiple successive trades very quickly.

The high speed with which computers can execute trade orders makes this type of trading very difficult to regulate. The term is often used synonymously with the term algorithmic trading, although not all high frequency trading is fully automated.

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Editor Daniel Dreier
Daniel Dreier is editor and personal finance expert at moneyland.ch.