High frequency trading
From ACT Wiki
(HFT.) Trading activities using sophisticated technological tools and computer algorithms that generate a large number of daily trades at very fast speeds. Typically at the end of the day there is no open position in the market.
Characteristics attributed to HFT are:
1. extraordinarily high speed using sophisticated computer programs for generating, routing, and executing orders;
2. use of co-location services and individual data feeds offered by exchanges and others to minimize network and other types of time delays;
3. very short time-frames for establishing and liquidating positions;
4. the submission of numerous orders that are cancelled shortly after submission;
5. ending the trading day in as flat a position as possible.
