Difference between High Frequency Trading, Algorithmic Trading and Automated Trading

It’s been more than four months that I resigned from my previous organization [one of the expertise in Trade automation], but still whenever I speak about algo trading I often get questions like — isn’t it same as High Frequency Trading.

So, I just thought of putting a post and here it is -

What is Algorithmic Trading?

What is Automated Trading?

What is High Frequency Trading?

HFT is simple use of technology to make speedy trades, which could last for milliseconds or less. HFT traders never ever hold any positions overnight, and you might see heavy trading execution done before the closing bell by HFT traders. The way the HFT firms gain is by trading for large or huge volume of trades, numbering even in the millions.

Wasn’t that simple? Hopefully that clears your doubt!!



Product Manager | Writer | Blockchain | NFT | Fintech

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