BotsPediaGlossary
High-frequency trading bots

High-frequency trading bots

High-frequency bots execute many trades per minute. These trading bots make tiny earnings in milliseconds to microseconds. You might be wondering if it's worth it given that they just make small profits. But if a bot performs this thousands of times every day, these earnings can add up significantly.

Because of their rapidity, high-frequency trading bots have a significant benefit over humans. Human traders must first read the news, which might take tens of minutes. Then they must open up their trading app and place an order. So while they may still be profitable, high-frequency trading bots already got into the market before everyone else did and thus made more money.

High-frequency trading bots may utilize a variety of variables in their strategies. For example, they might simply follow the trend or identify arbitrage possibilities in complex data sets.