Securities Trader Representative (Series 57) Practice Exam 2026 - Free Series 57 Practice Questions and Study Guide

High-frequency trading is characterized by the use of algorithms and high-speed connections to execute orders at an extremely rapid pace. This trading strategy relies on complex computer programs that analyze market conditions and make thousands of trades in fractions of a second. The speed at which trades are processed allows high-frequency traders to capitalize on very small price movements that are often imperceptible to human traders.

The approach is primarily about leveraging technology to gain a competitive advantage in the markets. It doesn't involve physical trading floors, nor does it operate at a slow and steady pace; instead, it emphasizes automation and quick decision-making. While selling securities at predetermined prices might occur in various trading strategies, it does not define the unique characteristics of high-frequency trading itself, which is fundamentally about speed and algorithmic execution.