AI in High-Frequency Trading (HFT) for Forex High-frequency trading (HFT) uses AI-powered algorithms to execute a large number of forex trades in milliseconds. These trades aim to profit from tiny price differences. How It Works: 1. Market Scanning – AI analyzes price movements, liquidity, and order book data instantly. 2. Ultra-Fast Execution – AI places and cancels thousands of orders per second. 3. Arbitrage Strategies – AI exploits small price gaps between different forex markets. 4. Market Making – AI provides liquidity by continuously buying and selling. Advantages: ✅ Executes trades faster than humans ✅ Maximizes profits from small price movements ✅ Reduces bid-ask spreads, improving market liquidity Risks: ⚠️ Can cause flash crashes due to rapid trade execution ⚠️ Requires advanced infrastructure and low-latency networks ⚠️ Regulatory scrutiny due to market manipulation concerns HFT dominates forex trading, especially for major currency pairs, making AI a key player in market efficiency. 🚀📈 #AITradingAffectsForex