Trading
⚡ High-Frequency Trading Impact
High-frequency trading (HFT) accounts for 50-60% of US equity volume, using algorithms to execute thousands of trades per second. HFT provides liquidity and narrows bid-ask spreads but may increase volatility during stress periods like flash crashes. Retail investors benefit from better spreads but should avoid competing on speed. Focus on longer-term strategies where fundamental analysis provides advantages over algorithmic trading.