High-frequency trading - Wikipedia, the free encyclopedia: "High-frequency traders move in and out of short-term positions aiming to capture sometimes just a fraction of a cent in profit on every trade.[3] HFT firms do not employ significant leverage, accumulate positions or hold their portfolios overnight.[11] As a result, HFT has a potential Sharpe ratio (a measure of risk and reward) thousands of times higher than traditional buy-and-hold strategies.[12] High-frequency traders typically compete against other HFTs, rather than long-term investors.[11][13] HFT firms make up the low margins with incredible high volumes of tradings, frequently numbering in the millions."
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