"The Impact of AI on the Frequency and Magnitude of Micro-Price Fluctuations," delves into how the increasing prevalence of AI in Forex trading affects the very fine-grained movements of currency prices. Micro-price fluctuations refer to the rapid, small changes in price that occur at very short time intervals. AI algorithms, particularly those involved in high-frequency trading (HFT), are capable of executing a large volume of trades at extremely high speeds, reacting to market data in milliseconds. This heightened activity can lead to an increase in the frequency of these micro-price movements. With more algorithms constantly adjusting bids and asks based on minute changes in information, the order book can experience rapid updates, translating to more frequent, albeit often small, price changes. Furthermore, AI's ability to detect and exploit very short-term arbitrage opportunities or react to subtle signals can also influence the magnitude of these fluctuations. While individual AI trades might be small, the sheer volume and speed at which they occur can collectively amplify price volatility at the micro-level. This can result in a market characterized by increased "noise," where prices exhibit more frequent and potentially larger small oscillations compared to a market dominated by slower, human-driven trading. Understanding these dynamics is crucial for participants trying to execute large orders or those sensitive to very short-term price risks.