High-Frequency Trading Reshapes Market Dynamics with Speed and Scale
High-frequency trading has emerged as a dominant force in global markets, executing millions of transactions at speeds measured in microseconds. This algorithmic arms race creates both opportunities and vulnerabilities for market participants.
The practice leverages cutting-edge infrastructure to capitalize on minute price discrepancies, offering improved liquidity but raising concerns about market stability. Institutional investors increasingly view HFT as both an indispensable tool and a potential systemic risk factor.