HFT: A Driver of Efficiency and Narrow Spreads in Financial Markets! ✅💰
Despite criticism, HFT brings significant benefits to financial markets by July 2025:
Increased Liquidity: HFT firms are the largest providers of liquidity, constantly placing orders and making markets more 'deep'.
Narrowing Spreads: Competition among HFT traders leads to a reduction in the difference between buying and selling prices, which lowers transaction costs for all market participants.
Improved Pricing: Rapid responses to new information help asset prices reflect true value more quickly.
Increased Efficiency: HFT contributes to a more efficient allocation of capital and information in the markets. These advantages make HFT a key element of modern markets.
