High-Frequency Trading (HFT) is a type of trading that uses powerful computers to execute a large number of orders at extremely high speeds. Traders employ complex algorithms to analyze market data and make quick decisions, often holding positions for just seconds or milliseconds. This allows them to capitalize on small price movements in financial markets. HFT is commonly used in various markets, including stocks, bonds, and foreign exchange. While it can increase market liquidity and efficiency, it has also raised concerns about market stability and fairness, as it may give an advantage to firms with advanced technology over traditional investors.