HISTORYHigh frequency trading has its roots in the 17th century. The Rothschilds used pigeons to transport securities information overseas to achieve faster arbitrage than their competitor for differences in stock prices across national borders by using carrier pigeons to relay. information before their competitors. They also used the runner, horse carriers and tape recorders for information exchange. Nowadays, computer is very useful for humans and it has been used for the purpose of making financial profit with speed and processing of huge data. Therefore, high frequency trading helps the investor achieve this goal. High-frequency trading has been going on since 1999. At that time, HFT was traded in seconds, meaning it can execute trades 1,000 times faster than a human. In 2010, they can execute transactions in milli or perhaps micro seconds. http://www.searchable.co.uk/portfolio-item/hft-trading-infographic/ High frequency trading (high frequency trading - HFT) is a sort of dealing with large numbers and is used by traders independent, via modern e-commerce equipment, often privately owned. These offer integrated information faster than traditional orders because they use complex trading algorithms and computers with powerful configuration; they are usually placed near the electronic trading system of the securities trading establishment. By placing the commercial department of trading systems, the investment company dealing with high frequency can increase the speed even within a few milliseconds outside the area, and thus can create a competitive advantage over other traders placing orders with slower systems. The system placed high frequency trading orders. not only faster, they are also more complex...... middle of paper...... o get used to them. For what ? HFT companies can trade multiple times each day, with the time measured in seconds and fully automatic. they have the same business strategies as traditional human market business strategies. HFTs carry out buying and selling like a traditional human market, with automation they offer investors lower costs and commissions than normal trading. As a result, human sources are being replaced by HFT strategies. HFT strategies perform cross-market arbitrage, for example by ensuring that the prices of the same stocks traded in New York and London are the same. This trading strategy can be implemented more quickly and inexpensively with computers. Additionally, HFT companies help investors easily find buyers and sellers for their transaction, easy liquidity if the fund requires further investments. WHAT WE KNOW (AND DON’T KNOW) ABOUT HIGH-FREQUENCY TRADING by Charles M. Jones