https://en.wikipedia.org/wiki/High-frequency_trading...

https://en.wikipedia.org/wiki/High-frequency_trading


High-frequency traders move in and out of short-term positions at high volumes and high speeds aiming to capture sometimes a fraction of a cent in profit on every trade.^[9] HFT firms do not consume significant amounts of capital, accumulate positions or hold their portfolios overnight.^[14] As a result, HFT has a potential Sharpe ratio (a measure of reward to risk) tens of times higher than traditional buy-and-hold strategies.^[15] High-frequency traders typically compete against other HFTs, rather than long-term investors.^[14][16][17] HFT firms make up the low margins with incredibly high volumes of trades, frequently numbering in the millions.