High-frequency trading (HFT) is a form of algorithmic trading which uses sophisticated computer algorithms to buy and sell financial assets at high speed. This approach has become increasingly popular in the UK, with traders seeking to take advantage of rapid price movements and short-term trends. HFT can be an effective strategy for experienced traders who understand it and are willing to take on short-term trading risks. This article will explore critical steps traders should use when employing the high-frequency trading strategy in the UK.
What to know before you consider HFT
If you’re asking yourself, “what is options trading?” HFT may not be the most suitable choice for you. As a high-risk strategy, HFT requires traders to have extensive knowledge and experience in the financial markets and understand what drives the prices. Additionally, it is crucial to know the costs associated with HFT, such as commissions, taxes, and …