Post
Topic
Board Trading Discussion
Re: High Frequency Trading
by
virasog
on 12/03/2021, 06:02:15 UTC
I am not that active on this discussion but sometimes I do lurk. And I think that this post is going to be relevant to the future of trading in general. I was watching a Youtube video about High Frequency Trading and I think that it will be the future of trading because the program can do trading faster than any human being. There is more in depth in the video but I will try my best to summarize HFT, consider that the stock price is around 10 USD and you ordered at that price but the prices dropped to 9 USD and HFT swoops in and buys at that price and then when your order arrives at 10 USD they are going to sell it to you with the profit of 1 USD. I am using stock as an example because the documentary that I watched was mostly focused on that. My question is, will HFT be feasible in the cryptocurrency market? Will it face any problem?

Link to the documentary: The Wild World of High Frequency Stock Trading (Documentary)

I am not sure about this term "High Frequency Trading" but in crypto we call it day trading where people buy and sell on the same day and get some profits. Some people do trading with a program more specifically  a bot who will keep track of the market and will trade automatically. A bot woks good in a steady market like stock but sometimes it is not useful in a volatile market such as crypto.