# High-Frequency Trading

*Trading & Technical Analysis — Finicade finance glossary*

High-frequency trading uses speed — microseconds — to capture tiny edges across enormous volumes, mostly through market making and cross-venue arbitrage. Its defenders point to spreads that have collapsed to a cent and near-continuous liquidity. Its critics point to liquidity that vanishes precisely when it's needed, and to latency arbitrage that taxes slower participants without providing anything.

**Also known as:** HFT, low latency trading

**Related terms:** [Market Maker](https://finicade.com/glossary/market-maker), [Payment for Order Flow](https://finicade.com/glossary/payment-for-order-flow), [Front Running](https://finicade.com/glossary/front-running), [Bid-Ask Spread](https://finicade.com/glossary/bid-ask-spread), [Algorithmic Trading](https://finicade.com/glossary/algorithmic-trading)

Source: https://finicade.com/glossary/high-frequency-trading