High-Frequency Trading (HFT) Explained: How Algorithms Rule the Stock Market

Ever wondered how trades happen in fractions of a second? This video breaks down High-Frequency Trading (HFT), a type of algorithmic trading that uses powerful computers and complex mathematical models to execute millions of orders at lightning speed. Discover the key features of HFT: incredible #Speed (microseconds!), automated #Algorithms, massive #Volume, ultra-short holding times, and crucial direct market access through #CoLocation. Learn why HFT exists – to profit from tiny price differences via #arbitrage, provide #liquidity, and react instantly to market news. We'll explore core strategies like #MarketMaking, #StatisticalArbitrage, and #EventArbitrage. We also dive into the controversies surrounding HFT, including accusations of unfair advantage and its role in #MarketVolatility and "flash crashes." Understand the #RegulatoryScrutiny on practices like spoofing and layering. Finally, meet the major players like Jump Trading, Citadel Securities, and Virtu Financial who dominate this high-stakes world. #hft #quant #algotrading #stockmarket #finance #Programming #computerscience #mit #iit #cryptotrading #AlgorithmicTrading #FinancialMarkets #TradingStrategies #WallStreet #HedgeFunds #PropTrading #FinancialTech #FinTech #MarketMicrostructure #HighSpeedTrading #QuantitativeTrading #TradingAlgorithms #CapitalMarkets #FinancialEducation #TradingExplainers #MarketEfficiency #DarkPools #FlashCrash #RegulatoryCompliance