آفاق علمية
Volume 16, Numéro 1, Pages 1178-1194
2024-05-16

The Rise Of High-frequency Trading: Financial Market Friend Or Foe?

Authors : Guennoun Abdelhak . Korichi Belkacem . Guennoun Rim .

Abstract

High-frequency trading (HFT) has emerged as a powerful force in the financial markets over the past few decades. HFT is a type of trading that uses powerful computers and advanced algorithms to execute trades at lightning-fast speeds. While some argue that HFT has made the financial markets more efficient and has reduced spreads and transaction costs, others claim that it has contributed to market instability and has given an unfair advantage to large institutional traders over small investors. In this post, we'll take a closer look at the rise of HFT, explore its pros and cons, and discuss whether it's a friend or foe to the financial markets.

Keywords

high-freqiency trading ; financial markets ; traders ; invesrtors