Algorithmic & High-Frequency Trading

EasyChair Preprint 13951

Abstract

Algorithmic trading and high-frequency trading (HFT) have become increasingly prevalent in modern financial markets. Algorithmic trading refers to the use of computer programs to automatically execute trades based on pre-programmed rules and strategies. HFT is a specific type of algorithmic trading characterized by the use of sophisticated technological tools and extremely fast trade execution, often within milliseconds.

This abstract provides an overview of the key aspects of algorithmic and high-frequency trading. It begins by defining these concepts and tracing their historical development and growth. The paper then explores the various algorithmic trading strategies employed, including trend-following, market-making, arbitrage, and statistical arbitrage strategies, as well as order execution algorithms.

Keyphrases: Algorithmic Trading, Market Efficiency, high-frequency trading (HFT), market liquidity, transaction costs

@booklet{EasyChair:13951,
  author    = {Edwin Frank},
  title     = {Algorithmic & High-Frequency Trading},
  howpublished = {EasyChair Preprint 13951},
  year      = {EasyChair, 2024}}