in 1987 known as Black Monday. The Dow Jones Industrial Average suffered what was at the time the biggest percentage drop in its history, and the pain spread throughout the globe.the use of program trading, including circuit breakers that halt trading when there are significant market swings and other limits. But despite these measures, program trading continued to grow in popularity in the years following the crash.
These trades are typically very short term in nature and may involve buying and selling the same security multiple times in a matter of nanoseconds. AI algorithms analyse large amounts of data in real time and identify patterns and trends that are not immediately apparent to human traders. This helps tradersAnother important application of AI in HFT
And, so, just like most technologies, HFT provides several benefits to stock markets. These traders typically buy and sell assets at prices very close to the market price, which means they don’t charge investors high fees. Thisin the market, which in turn helps to stabilize prices and reduce the potential for sudden price swings.