High-frequency trading (HFT’s) -Part 2: Easy explanation. [Video]

In this video, you will learn about the risks and strategies pertaining to high frequency trading. Chapters: 00:00 – Introduction 00:28 – Risks of high-frequency trading 01:26 – High-frequency trading strategies 02:30 – How fast is high-frequency trading? 03:15 – Is it fair to trade this fast? 04:00 – Conclusion Risks of high-frequency trading HFTs rely a lot on machines that aren’t infallible. Also, if there is even a minor infrastructure issue, the HFT can incur huge losses. Traders in HFTs usually trade n large quantities and look to capture small price movements. Even a few cents of price movement can decide whether the trader wins or loses. (Explained in detail in the video) High-frequency trading strategies HFT strategies are usually based on arbitrage opportunities, market-neutral strategies, or mispricing of financial assets. There are several strategies firms use to generate profits, often trying to hide their edge. How fast is …