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Trends & Analysis
News

Oil prices surge to highest since late September

News

Gold breaks above $4000. What’s next?

News

Big tech announces huge deals, AI boom drives shares

News

Gold surges past $3,950 to hit record high

News

Dow Jones, S&P 500 soar to record closing highs

News

Week Ahead Preview: 6th of Oct

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High frequency trading definition

High frequency trading (HFT) is a trading strategy used by institutional traders to execute trades with extremely small delays. This trading strategy involves specialist hardware and software to allow traders to follow rapid, small market movements. In some cases, specialised cables allow traders to access market information microseconds before other traders, allowing them to respond to large orders or news events before other traders are even aware of them.

When HFT began to become prominent around 2008-2011, it was the centre of a controversy around the fairness or not of this practice. Practices such as front-running and spoofing can be performed semi-legally using HFT strategies, to the chagrin of other market participants. The effects on the overall market of HFT traders are still unclear.

 

Who uses high frequency trading?

Specialist HFT firms dominate the space. This is for the simple reason that HFT is highly expensive and requires extensive outlays on server space, high-powered computing and more. Sometimes these facilities are available for hire to traders who cannot afford to buy them outright, but the HFT space is still dominated by dedicated institutional players.

 

Start trading with ADSS

ADSS offers a range of global markets for traders, with CFD opportunities in indices, commodities, forex, equities and more. We also feature tutorials, how-to guides, and weekly webinars to help you navigate the financial markets and find better trading opportunities. You can start trading and investing online by opening a live trading or demo trading account.

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Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC – S.P.C (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates under First Category: Dealing in Securities and Fifth category: Arrangement and advice (Introduction). ADSS is a Limited Liability Company – Sole Proprietorship Company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

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ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.