High-frequency trading (HFT) is a form of algorithmic trading characterized by high turnover rates and high order-to-execution ratios. It relies on powerful computers to transact a large number of orders in fractions of a second and typically involves complex algorithms that analyze multiple markets and execute orders based on market conditions. HFT is prevalent in stock, options, and futures markets and can often contribute to the liquidity of these markets. Trader firms utilizing HFT strategies may capitalize on minute price discrepancies and inefficiencies.