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Trading Frequency

Trading Frequency

A trading frequency is the number of times security is traded in a given time period. For example, if security is traded (bought and sold) 1,000 times in a day, the frequency would be 1,000. Also, when it comes to trading frequency, you will undoubtedly come across High-Frequency Trading (HFT). It is a form of algorithmic trading that relies on ultra-high-speed connections and computers to get in and out of trades at a rapid pace, so the security is likely held for only a fraction of a second. This makes it possible for such algorithms to execute millions of trades in seconds and reach a high trading frequency.

The same logic applies to cryptocurrencies: replace security with cryptocurrency.