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High Frequency / Latency Trading

Written by Aaron Zimmer
Updated over 2 weeks ago

High-Frequency Trading (HFT):

Involves executing a large number of trades in extremely short timeframes (milliseconds or seconds) to capture very small price movements. These strategies depend on fast execution systems and automation.

High-frequency and latency-based strategies are prohibited because they rely on execution speed and system delays rather than genuine market analysis. These methods can exploit platform inefficiencies and create unfair trading conditions, which goes against the requirement for consistent, risk-based trading.

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