High-Frequency Trading (HFT)

A form of algorithmic trading that uses powerful computers and ultra-low-latency connections to execute thousands of orders in fractions of a second. HFT firms profit from tiny price discrepancies, rebates from exchanges, and speed advantages over slower participants. Michael Lewis's 2014 book "Flash Boys" brought HFT into the public spotlight, sparking debate over whether these firms provide valuable liquidity or unfairly front-run retail and institutional orders.