High-frequency trading (HFT) is a type of algorithmic trading that uses powerful computers to execute trades at extremely high speeds. These trades are typically made in milliseconds or microseconds, allowing HFT firms to capitalize on small price discrepancies and market inefficiencies. HFT has become increasingly prevalent in financial markets, accounting for a large portion of trading volume in many markets. Critics argue that HFT can create volatility and instability in financial markets, while proponents contend that it improves liquidity and price efficiency. Research in the area of high-frequency trading often focuses on the impact of HFT on market dynamics, regulation, and market structure.