High-Frequency Trading is a type of trading in which sophisticated computer algorithms are used to execute a high number of transaction orders in fractions of a second.
To evaluate various markets and execute orders based on market circumstances, a sophisticated algorithm is built.
HFT companies have a higher order-to-trade ratio and a higher turnover rate (higher rate of executing transactions successfully).
When the NYSE was seeking for businesses that might enhance transaction liquidity and make quotations more competitive, High-Frequency Trading was born.