how is high frequency trading different from algorithmic trading 
hft is actually a form of algorithmic trading and it s characterized by extremely high speed and a large number of transactions it uses high speed networking and computing along with black box algorithms to trade securities at very fast speeds trades can take place in a millionth of a second the bottom lineno doubt algorithmic trading can offer several different advantages such as speed efficiency and objectivity in trading decisions it can automate entry and exit points reduce the risk of human error and prevent information leakage however it also carries significant risks it s reliant on complex technology that can malfunction or be hacked and high frequency trading can amplify systemic risk market volatility execution errors and technical glitches are also potential hazards 