High Frequency Trading

Computers that execute complicated algorithms to automically make thousands of trades per second with no human interaction.

Generally profits per trade don’t exceed a penny; however, due to the bulk amount of trades the overall profits can range into the millions.

At it’s current state, high frequency trading is an extremely secretive practice and is still being examined by the SEC.

High frequency trading was responsible for the “flash crash” that happened in May 10′.