Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

High frequency trading definition

High frequency trading (or HFT) is a form of advanced trading platform that processes a high numbers of trades very quickly using powerful computing technology. It can be used to either find the best price for a single large order, or to find opportunities for profit in the market in real time.

The algorithms behind high frequency trading tend to be extremely complex, allowing the program to trade across several markets at once as conditions are met. The advantage of HFT is largely down to how quickly the platform can process trades, so the focus is on the power of computers used and location of computing programs. By placing themselves nearby to the exchanges taking orders, HFT firms can gain millisecond advantages over their rivals.

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