{"id":46301,"date":"2023-09-11T15:38:43","date_gmt":"2023-09-11T13:38:43","guid":{"rendered":"https:\/\/staging.captrader.com\/blog\/hochfrequenzhandel\/"},"modified":"2026-02-20T08:34:06","modified_gmt":"2026-02-20T07:34:06","slug":"high-frequency-trading","status":"publish","type":"blog","link":"https:\/\/www.captrader.com\/en\/blog\/hochfrequenzhandel\/","title":{"rendered":"High-frequency trading and its significance for traders"},"content":{"rendered":"<p class=\"wp-block-paragraph\">The <strong>High frequency trading<\/strong> is a <strong>Computer-based, fully automated, lightning-fast trading with a high number of trades.<\/strong> High frequency trading is subject to strict rules and regulations in Germany and most other countries. We have summarized for you whether and how this form of trading is suitable for private traders, what conditions must be met and what significance high frequency trading has.&nbsp;<\/p>\n\n\n<style id=\"bricks-inline-css-component-lnntzm\">\n\/* BREAKPOINT: Desktop (BASE) *\/\n.block-editor-iframe__body .brxe-rtliac:not(.tag), .block-editor-iframe__body .brxe-rtliac img{aspect-ratio: 1; object-fit: contain}\n.block-editor-iframe__body .brxe-rtliac{width: 65px}\n\n\n\/* BREAKPOINT: Desktop (BASE) *\/\n.block-editor-iframe__body .brxe-lkidxf{border: 3px solid #F6F6F8; margin-top: -60px; background-color: var(--light)}\n\n\n\/* BREAKPOINT: Desktop (BASE) *\/\n.block-editor-iframe__body .brxe-jzmkoh{font-weight: 600; font-size: var(--text-xl); text-transform: uppercase}\n\n\n\/* BREAKPOINT: Desktop (BASE) *\/\n.block-editor-iframe__body .brxe-umltno ul li{ list-style: none; position: relative; padding-left: 30px;} .block-editor-iframe__body .brxe-umltno ul li::before{ content: ''; position: absolute; left: 0; top: 0.4em; width: 15px; height: 15px; background-image: url('\/wp-content\/uploads\/2024\/02\/square-full-solid.svg'); background-size: contain; background-repeat: no-repeat;}\n\n\n\/* BREAKPOINT: Mobil Hochformat *\/\n@media (max-width: 478px){\n.block-editor-iframe__body .brxe-xowhkb{margin-top: 20px}\n}\n\n\/* BREAKPOINT: Desktop (BASE) *\/\n.block-editor-iframe__body .brxe-lnntzm{background-color: #F6F6F8; align-items: center; position: relative; margin-top: 60px; padding-right: var(--space-l); padding-bottom: var(--space-l); padding-left: var(--space-l)}\n\n\n\/* Disable links in editor *\/\n.block-editor-iframe__body a.brxe-lnntzm, .block-editor-iframe__body .brxe-lnntzm a{ pointer-events: none; }\n<\/style><div class=\"brxe-lnntzm brxe-block\"><div class=\"brxe-lkidxf brxe-div radius-full padding-s\"><img decoding=\"async\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/06\/Icons_Uebersicht-blau.svg\" class=\"brxe-rtliac brxe-image css-filter size-full\" alt=\"A simple outline of a document with horizontal lines and a yellow magnifying glass in front of it, symbolizing the document check or search.\" \/><\/div><div class=\"brxe-xowhkb brxe-block\"><h2 class=\"brxe-jzmkoh brxe-heading\">The most important in a nutshell<\/h2><div class=\"brxe-umltno brxe-text\"><ul>\n<li>High-frequency trading occurs when a large number of fully automated trades are executed without human decisions and latency-reducing infrastructure is used for this purpose\u00a0<\/li>\n<li>This form of trading is hardly accessible to private investors and is used almost exclusively in the professional sector<\/li>\n<li>High frequency trading is considered controversial and can have a significant impact on markets and exchanges. It is therefore strictly regulated and requires a corresponding license<\/li>\n<li>Private traders can use alternatives based on the same concept<\/li>\n<\/ul>\n<\/div><\/div><\/div>\n\n\n<h2 class=\"wp-block-heading\">High-frequency trading on the stock exchange: what's behind it?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Powerful computers<\/strong> have been forming the <strong>The backbone of the financial markets. <\/strong>As well as being used in banks, public authorities and for market infrastructure, the systems are also being used more and more by retailers.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">AI-supported investment recommendations, trading bots and automation in trading programs are already part of everyday life. They optimize our trading decisions, but most traders still open and close their positions themselves, with the support of the systems.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The situation is quite different with <strong>High frequency trading<\/strong> off: Here the <strong>Trades fully automated, without any human intervention<\/strong> from. As the name suggests, this also includes the<strong> Number of trades enormously high.&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The used <strong>High-performance computer<\/strong> can <strong>in the range of microseconds<\/strong>a millionth of a second. In order to be able to utilize this time advantage at all, a<strong> Appropriate infrastructure required<\/strong>High frequency trading often takes place in the immediate vicinity of the exchanges in order to speed up data transmission.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Using pre-programmed algorithms, the systems act at lightning speed in an attempt to realize profits. This is achieved, for example, by recognizing market delays and acting \"faster than the competition\". Differences between trading venues can also be exploited in this way.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>High-frequency trading already accounts for a large proportion of the trading volume on the stock exchange.<\/strong> Its supporters argue that it contributes to liquidity and low spreads and is very important for the functioning of the stock exchanges and the economy as a whole. However, there are also very critical voices.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-group banner-bild\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\"><a id=\"brxe-natriv\" href=\"https:\/\/www.captrader.com\/en\/depot-eroeffnen\/\" class=\"brxe-block margin-bottom-s banner-bild\"><img loading=\"lazy\" decoding=\"async\" width=\"1500\" height=\"500\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_horizontal-Konto-Eroeffnen_EN.jpg\" class=\"brxe-image css-filter size-full\" alt=\"A smiling man and a smiling woman sit together at a laptop looking through papers; a banner ad lists financial services and offers an &quot;open account&quot; button.\" id=\"brxe-oqhpgu\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_horizontal-Konto-Eroeffnen_EN.jpg 1500w, https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_horizontal-Konto-Eroeffnen_EN-300x100.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_horizontal-Konto-Eroeffnen_EN-1024x341.jpg 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_horizontal-Konto-Eroeffnen_EN-768x256.jpg 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_horizontal-Konto-Eroeffnen_EN-18x6.jpg 18w\" sizes=\"auto, (max-width: 1500px) 100vw, 1500px\" \/><\/a><a id=\"brxe-molbtd\" href=\"https:\/\/www.captrader.com\/en\/depot-eroeffnen\/\" class=\"brxe-block margin-bottom-s\"><img loading=\"lazy\" decoding=\"async\" width=\"350\" height=\"700\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_vertikal_Konto-Eroeffnen_EN.jpg\" class=\"brxe-image css-filter size-full\" alt=\"A man and a woman look at documents and a laptop advertising stock market trading, account opening and services.\" id=\"brxe-tlerqb\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_vertikal_Konto-Eroeffnen_EN.jpg 350w, https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_vertikal_Konto-Eroeffnen_EN-150x300.jpg 150w, https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_vertikal_Konto-Eroeffnen_EN-6x12.jpg 6w\" sizes=\"auto, (max-width: 350px) 100vw, 350px\" \/><\/a>\n<\/div><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Definition: high-frequency trading is strictly regulated<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>High Frequncy Trading is regulated in Europe<\/strong> and defined in several laws. But trading at high speeds and using computers is not automatically high-frequency trading! So you don't have to worry that your <a href=\"https:\/\/www.captrader.com\/en\/blog\/scalping\/\">Scalping strategy<\/a> an official permit is required.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In Germany, the most important <strong>High Frequency Trading Act <\/strong>decisive. A very similar definition can also be found in the Markets in Financial Instruments Directive (MiFID), an EU directive on various financial instruments. It <strong>define high frequency trading as follows:&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">High-frequency trading occurs when<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>A system the trade<\/strong> (initiation, forwarding, execution, etc.) <strong>independently and without human intervention.&nbsp;<\/strong><\/li>\n\n\n\n<li>So-called \"<strong>latency-reducing infrastructures<\/strong>\" are used.<\/li>\n\n\n\n<li>A <strong>High volume of intraday notifications <\/strong>is available.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If all three points apply to a trading strategy and the executing person is acting on his own account, a <strong>Permission in accordance with the German Banking Act <\/strong>required.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The first definition point, which <strong>Trade without human intervention<\/strong>is in times of trading bots and algorithms <strong>comparatively common<\/strong>. Today, any trader can use such programs. But only if the next two requirements are also met is there actual high-frequency trading.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Among the \"<strong>latency-reducing infrastructures<\/strong>\" is understood to mean<strong> technical measures designed to speed up trade.<\/strong> Since a normal Internet connection, for example, has a slight delay in data transmission, it is not suitable for trading in the microsecond range.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The most popular measure to avoid this loss of time is the <strong>local proximity to the trading centers. <\/strong>If a high-performance computer is located in the immediate vicinity of the exchange's servers, signal transmission is much faster.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, if the data first has to \"travel\" halfway around the world, the time advantage of high-frequency trading systems is lost. Finally, a <strong>High volume of trades<\/strong> (\"high intraday message volume\") is required to meet the definition of high-frequency trading.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The authorities deliberately do not give any specific figures here, but in practice <strong>Several thousand trades per day <\/strong>required to fulfill this definition point. Overall, the risk of being wrongly classified as a high frequency trader is therefore very low.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If high-frequency trading is required by law, the<strong> numerous requirements of the authorities.<\/strong> For example, companies must <strong>take various safety precautions <\/strong>and constantly monitor them in order to avoid unintentional market manipulation.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The many regulations are another reason why <strong>this type of trade is not realistically feasible for private individuals<\/strong> Even if you had the necessary computer systems and the technical know-how for high frequency trading, the legal requirements would go beyond the scope.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">High-frequency trading, curse or blessing?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The concept <strong>High-frequency trading has long been criticized.<\/strong> Opponents and proponents put forward different arguments. The fact is that a <strong>unregulated high-frequency trading poses considerable risks <\/strong>go out. This type of trade is therefore heavily regulated and monitored on all markets.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The individual stock exchanges and supervisory authorities use different measures to minimize these risks. With <strong>Volatility interruptions<\/strong> for example, limits the ability of algorithms to cause damage.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In addition<strong> analyze the control bodies <\/strong>with great effort <strong>Market movements<\/strong>. This is because high-frequency trading <strong>Manipulation possible <\/strong>- particularly in connection with large amounts of capital. The authorities have already been able to identify and stop a number of such fraud attempts in the past.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To this end, high-frequency trading operators must disclose their algorithms on request. Automated plausibility checks allow the exchanges to uncover further inconsistencies. Despite this <strong>Extensive safety measures<\/strong> stay <strong>Uncertainties and problems<\/strong> exist.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Advantages<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">High-frequency trading accounts for a large proportion of daily trades on the stock exchange. As a result, huge volumes of <a href=\"https:\/\/www.captrader.com\/en\/tradable-products\/stocks\/\">Stocks<\/a>, <a href=\"https:\/\/www.captrader.com\/en\/tradable-products\/futures\/\">Futures<\/a>, <a href=\"https:\/\/www.captrader.com\/en\/tradable-products\/forex\/\">Foreign exchange<\/a> and Co. In the episode <strong>liquidity inevitably increases, which in turn is positive for banks, companies and small investors.&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As high-frequency traders are constantly closing trades, it is easier for other traders to find a counterparty for their own positions. Proponents of the method assume that <strong>In this way the spread<\/strong> (difference between purchase and sales price) <strong>on the markets.&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, the main advantage and ultimately the reason why banks and companies engage in this type of trading is the <strong>Profit prospect.<\/strong> The trade generates income \"out of nothing\", which is of course extremely positive for the institutions involved.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Problems<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">High-frequency trading should be viewed critically, as it can lead to numerous direct and indirect problems. The seemingly magical money-making (especially through arbitrage strategies) that the trading technique offers has considerable <strong>ethical complications.&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The participants <strong>generate additional assets without having contributed any market value.<\/strong> Other market participants, such as workers and employees, ultimately experience a devaluation of their labor: if money can be created out of nothing, their own work becomes less important.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Critics also note that trading in high frequencies gives stock exchanges a <strong>Fake increased demand<\/strong> becomes. Since the high frequency traders have no real interest in the traded stocks (e.g. they do not buy shares because they believe in the potential of the company),<strong> falsify and distort the market data.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Dozens of studies that have investigated this problem in the past have come to the same conclusion: the <strong>High-frequency trading on the stock exchange increases costs for other market participants.&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Due to the resulting<strong> Distortions and the unpredictability<\/strong> <strong>the confidence of the population also decreases <\/strong>in the financial markets as a whole. High-frequency trading is also susceptible to errors and manipulation attempts.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Due to the high speed at which the systems execute their algorithms, <strong>the damage also adds up to huge sums in a short time.<\/strong> The consequences can affect not only the companies that engage in this type of trade, but also<strong> negative influences on the markets themselves <\/strong>take.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Malicious or unintentional manipulation has repeatedly caused considerable damage. In view of the dangers and problems associated with high-frequency trading, the <strong>Desire for stricter regulations or even a complete ban<\/strong> not surprising.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Although numerous critics are calling for such measures, changes to the regulations for high frequency trading in Germany are rather unlikely.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-group banner-bild\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\"><a id=\"brxe-kbumbq\" href=\"https:\/\/www.captrader.com\/en\/depot-eroeffnen\/\" class=\"brxe-block margin-bottom-s banner-bild\"><img loading=\"lazy\" decoding=\"async\" width=\"1500\" height=\"500\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_horizontal-Astronaut_EN.jpg\" class=\"brxe-image css-filter size-full\" alt=\"An astronaut floating in space with the earth in the background, next to it an advertising text about share trading services and a yellow &quot;Open account&quot; button.\" id=\"brxe-xmcpzb\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_horizontal-Astronaut_EN.jpg 1500w, https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_horizontal-Astronaut_EN-300x100.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_horizontal-Astronaut_EN-1024x341.jpg 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_horizontal-Astronaut_EN-768x256.jpg 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_horizontal-Astronaut_EN-18x6.jpg 18w\" sizes=\"auto, (max-width: 1500px) 100vw, 1500px\" \/><\/a><a id=\"brxe-devmle\" href=\"https:\/\/www.captrader.com\/en\/depot-eroeffnen\/\" class=\"brxe-block margin-bottom-s\"><img loading=\"lazy\" decoding=\"async\" width=\"350\" height=\"700\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_vertikal_Astronaut_EN.jpg\" class=\"brxe-image css-filter size-full\" alt=\"An astronaut floats in space next to ad text promoting stock trading features such as global exchanges, short selling and fractional shares. A yellow button reads &quot;Open an account&quot;.\" id=\"brxe-edyjfs\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_vertikal_Astronaut_EN.jpg 350w, https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_vertikal_Astronaut_EN-150x300.jpg 150w, https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_vertikal_Astronaut_EN-6x12.jpg 6w\" sizes=\"auto, (max-width: 350px) 100vw, 350px\" \/><\/a>\n<\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">High frequency trading strategies&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Different strategies can be used when trading in high frequency. They all utilize the advantages of computer systems and are based on one of two basic concepts:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The high speed of the trading systems or<\/li>\n\n\n\n<li>The ability to sell high trading volumes in a short period of time<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Although high-frequency transactions are not accessible to private individuals due to the considerable technical and regulatory effort involved, they <strong>however, offer interesting strategic approaches<\/strong> and can help retailers to optimize their own approach.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is also <strong>it makes sense to know the high-frequency concept. <\/strong>This is the only way you can understand how the markets work and trade successfully in the long term!<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. volume strategies<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Thanks to powerful computers, operators can<strong> Thousands of orders in the shortest possible time<\/strong> place. The systems can also easily monitor dozens of trading venues and an unlimited number of assets in order to react immediately to changes.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This makes it possible, for example, to buy all available shares in a company in different parts of the world as soon as they become available. Other <strong>Volume strategies rely on price changes<\/strong>which is triggered by the release of a <strong>high volume of trades<\/strong> are caused.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. speed strategies<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The majority of high-frequency retailers use the <strong>superior speed <\/strong>of the programs in order to realize advantages on the market. Due to the possibility, <strong>Trade price differences within microseconds<\/strong>they can ideally exploit differences or short-term offers.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A popular way of using this speed is the <strong>Arbitrage trading. <\/strong>Here you use <strong>Minimal price differences between different exchanges<\/strong>. As such differences usually even out extremely quickly, a fast pace is required.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The computers move large volumes between trading venues at lightning speed. For example, the system could buy shares at trading venue A for 100 euros and immediately sell them at trading venue B for 100.01 euros.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One cent of profit may not seem worth mentioning at first, but it adds up with a high volume per trade. In addition, thousands of such transactions can be processed in a short period of time, which also drastically increases income.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Arbitrage strategies are also widespread among private traders. <\/strong>Without the infrastructure of high-frequency trading, however, such procedures are clearly not possible. <strong>less successful.&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You also need access to appropriate <strong>Data to discover price differences quickly and reliably<\/strong> - another reason why arbitrage trading is more suitable for professionals.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Through signaling services, such as <a href=\"https:\/\/www.captrader.com\/en\/blog\/forex-signals\/\">Forex signals<\/a>However, access to trading data for private individuals has improved in recent years. Arbitrage and similar forms of trading have experienced a small renaissance as a result.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The exploitation of favorable but time-limited opportunities also falls within the scope of speed-based strategies. The systems of high-frequency traders monitor a wide variety of assets and wait for attractive opportunities.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A major, sudden sell-off or a sudden spike in prices are typical examples. Such opportunities can only be exploited with the high speed of computers.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-group banner-bild\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\"><a id=\"brxe-jacjrw\" href=\"https:\/\/www.captrader.com\/en\/depot-eroeffnen\/\" class=\"brxe-block margin-bottom-s banner-bild\"><img loading=\"lazy\" decoding=\"async\" width=\"1500\" height=\"500\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/Weltkugel_EN.jpg\" class=\"brxe-image css-filter size-full\" alt=\"Advertising banner for CapTrader with statistical data: 1.2 million tradable securities, 170 stock exchanges, 36 countries, 28 currencies and a button to open an account.\" id=\"brxe-paogup\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/Weltkugel_EN.jpg 1500w, https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/Weltkugel_EN-300x100.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/Weltkugel_EN-1024x341.jpg 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/Weltkugel_EN-768x256.jpg 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/Weltkugel_EN-18x6.jpg 18w\" sizes=\"auto, (max-width: 1500px) 100vw, 1500px\" \/><\/a><a id=\"brxe-hojgaz\" href=\"https:\/\/www.captrader.com\/en\/depot-eroeffnen\/\" class=\"brxe-block margin-bottom-s\"><img loading=\"lazy\" decoding=\"async\" width=\"350\" height=\"700\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_vertikal_Weltkugel_EN.jpg\" class=\"brxe-image css-filter size-full\" alt=\"Advertisement for CapTrader with a view of Europe from space at night, a list of trading advantages and a yellow button labeled &quot;Open account&quot;.\" id=\"brxe-aaxoxz\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_vertikal_Weltkugel_EN.jpg 350w, https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_vertikal_Weltkugel_EN-150x300.jpg 150w, https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_vertikal_Weltkugel_EN-6x12.jpg 6w\" sizes=\"auto, (max-width: 350px) 100vw, 350px\" \/><\/a>\n<\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Implementation for private traders<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">It is not completely impossible, but the <strong>High-frequency transactions are extremely difficult for private traders to implement.<\/strong> Due to the high technical and legal requirements, its use is almost exclusively for banks and other institutions.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, as a private market participant you can <strong>apply the same techniques (in a slightly modified form)<\/strong> and thus benefit from the underlying concept. There are several options available to you<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. trading bots and automated trading<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>Automating trading decisions<\/strong> and transactions has a long history in the financial markets. Even a simple <a href=\"https:\/\/www.captrader.com\/en\/glossary\/limit-order\/\">Limit<\/a>- or <a href=\"https:\/\/www.captrader.com\/en\/glossary\/stop-loss-order\/\" data-type=\"link\" data-id=\"https:\/\/www.captrader.com\/glossar\/limit-order\/\">Stop order<\/a> is ultimately an automation: You specify that a transaction should be executed automatically when a set value is reached.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But this concept can be taken much further! <strong>With high-quality trading programs, you can translate complex strategies into rules<\/strong>which the software then executes for you. You benefit from the computer's emotionless execution - it knows no panic, greed or uncertainty.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Today's traders can choose from an increasing number of automatic trading offers. It is therefore all the more important that you have a <strong>Use trading software with suitable interfaces.<\/strong> This is the only way you can use the external tools in practice.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-group info-box\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\"><strong>CapTrader can do that:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">CapTrader customers receive free access to several professional trading programs. Alternatively, you can connect a trading tool via external interfaces. Our experienced German customer service will help you with questions and problems.&nbsp;<\/p>\n<\/div><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Particularly popular at the moment is the <strong>\"<a href=\"https:\/\/www.captrader.com\/en\/blog\/ai-trading\/\">AI trading<\/a>\"<\/strong>. Artificial intelligence is on everyone's lips anyway and does not stop at the financial market. The <strong>adaptive computer system <\/strong>your <strong>Optimize your strategy or implement it for you with high precision.&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The offers often include <strong>Fully automated AI investments<\/strong>which are usually created in just a few seconds via attractive apps. However, they are aimed more at inexperienced people and have not yet been able to show any lucrative long-term returns.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As <strong>Additional input for your own trading strategy<\/strong> however, the programs are definitely useful. Regardless of whether you use an AI, create rules directly in a trading program or use external software ... it is <strong>It is strongly recommended to test the application on a demo account first!&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>A lot can go wrong with automation. <\/strong>Long test loops and stress tests of the programs are also essential in the high-frequency range. You can connect your bots, automation and external trading software via a <a href=\"https:\/\/www.captrader.com\/en\/open-demo-account\/\">Demo account<\/a> at CapTrader.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. trading strategies with high speed<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The second important advantage of trading in high frequency is the <strong>High speed<\/strong>with which the programs execute the instructions. This aspect can be <strong>with regular computers and typical home Internet connections <\/strong>- the implementation of a trading instruction simply takes too long.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, fast trading is also popular among private traders. Here in particular the <a href=\"https:\/\/www.captrader.com\/en\/blog\/scalping\/\">Scalping<\/a> a trading philosophy, in which the <strong>Numerous quick trades with small profits <\/strong>add up. As high-frequency trading is rather inaccessible to non-professionals, scalping is generally regarded as the fastest form of trading.&nbsp;<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/03\/HnexbyPhSUlnpgG395l_k6_hltoMrlt51OYmul3ij7lXcUN51ApE2pqv3uejQIHUcRbyTph6jwFYZ8thYmuauhLJk5jrBIYNWipIkWGzwmLeyfqF5K2coE9blcGbyafr939d5l2RvEiNkZ9FlmbOPrc.jpeg\" alt=\"\" style=\"width:698px;height:478px\"\/><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">Scalping is generally regarded as the fastest form of trading. Although high-frequency trading is significantly faster, it is almost inaccessible to private traders.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>Scalping is therefore similar to the way high-frequency trading works<\/strong>. High frequency trading is therefore often jokingly referred to as a \"scalping strategy on speed\".&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While the technical possibilities play a decisive role in high-frequency trading (low latency\/fast data transmission, powerful computers, etc.) <strong>In scalping, the trader's expertise and discipline are the most important success factors.&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You should also bear in mind that with fast trading strategies <strong>the broker plays an enormously important role! <\/strong>If you only buy individual shares occasionally, the costs of trading are negligible.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With scalping, high-frequency trading and similar procedures, however, you place several dozen to thousands of trades per day! Already<strong> The smallest differences in your broker's billing model can result in massive differences.&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is how <strong>CapTrader<\/strong> when trading US shares, for example <strong>more than ten times cheaper than comparable offers from a German house bank. <\/strong>For transactions on German stock exchanges, CapTrader undercuts the banks by half.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-group info-box\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\"><strong>CapTrader can do that:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With trading prices from $ 0.01 per US share or 0.1 percent of the order value for German securities, CapTrader offers you the most favorable conditions. Options (from 2.00 euros), futures (from 1.00 euros) or forex trading (from 3.75 euros) also keep your returns low thanks to the low costs.<\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group banner-bild\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\"><a id=\"brxe-jqmpvn\" href=\"https:\/\/www.captrader.com\/en\/depot-eroeffnen\/\" class=\"brxe-block margin-bottom-s banner-bild\"><img loading=\"lazy\" decoding=\"async\" width=\"1500\" height=\"500\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_horizontal-App_EN.jpg\" class=\"brxe-image css-filter size-full\" alt=\"A person is holding a smartphone on which a trading app is displayed; the text highlights the app&#039;s functions and a yellow button reads &quot;Open account&quot;.\" id=\"brxe-tywkpc\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_horizontal-App_EN.jpg 1500w, https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_horizontal-App_EN-300x100.jpg 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_horizontal-App_EN-1024x341.jpg 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_horizontal-App_EN-768x256.jpg 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_horizontal-App_EN-18x6.jpg 18w\" sizes=\"auto, (max-width: 1500px) 100vw, 1500px\" \/><\/a><a id=\"brxe-uzfmqg\" href=\"https:\/\/www.captrader.com\/en\/depot-eroeffnen\/\" class=\"brxe-block margin-bottom-s\"><img loading=\"lazy\" decoding=\"async\" width=\"350\" height=\"700\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_vertikal_App_EN.jpg\" class=\"brxe-image css-filter size-full\" alt=\"Person holding a smartphone on which a trading app is displayed; the text lists functions of an investment platform and contains a button labeled &quot;Open account&quot;.\" id=\"brxe-xgbidm\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_vertikal_App_EN.jpg 350w, https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_vertikal_App_EN-150x300.jpg 150w, https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/01\/CapTrader_Werbebanner_vertikal_App_EN-6x12.jpg 6w\" sizes=\"auto, (max-width: 350px) 100vw, 350px\" \/><\/a>\n<\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion: High-frequency trading remains the preserve of professionals<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>High frequency trading<\/strong> seems extremely inviting, as it promises continuous returns without any action on your part. Unfortunately, this form of trading remains <strong>still reserved for professionals.&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Private traders can hardly provide the necessary infrastructure of powerful computers and high-speed data transmission. In addition, this trading is highly frequent <strong>strictly regulated!<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you meet the definition of high frequency trading (trading without human decisions, latency-reducing technology, high trading volume), you need a <strong>Permission under the High Frequency Trading Act.&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A hurdle that is entirely justified in view of the dangers: the <strong>High frequency trading<\/strong> can - intentionally or unintentionally - be <strong>Market distortions arise<\/strong>that cause considerable damage. Genuine manipulation has also occurred in the past.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Private traders can nevertheless apply the philosophy of high-frequency trading to their own approach: Strategies such as the <strong>Scalping<\/strong> or the use of <strong>Trading bots and automation<\/strong> use the same approach as high frequency trading.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">No official permission is required here either! Nevertheless, you are well advised to first test such strategies on a <a href=\"https:\/\/www.captrader.com\/en\/open-a-securities-account\/\">Demo account<\/a> to test. <strong>Because the risks are considerable.&nbsp;<\/strong><\/p>","protected":false},"excerpt":{"rendered":"<p>Der Hochfrequenzhandel ist ein computerbasierter, voll-automatisierter, blitzschneller Handel mit einer hohen Anzahl von Trades. Dieses High Frequency Trading unterliegt in Deutschland und den meisten anderen Nationen strengen Regeln und Vorgaben.&nbsp;Ob und wie sich diese Handelsform f\u00fcr private H\u00e4ndler eignet, welche Bedingungen zu erf\u00fcllen sind und welche Bedeutung High Frequency Trading hat, haben wir f\u00fcr Sie [&hellip;]<\/p>\n","protected":false},"author":20,"featured_media":46254,"menu_order":0,"template":"","blog-kategorie":[835],"class_list":["post-46301","blog","type-blog","status-publish","has-post-thumbnail","hentry","blog-kategorie-trading"],"acf":{"blog_summary":"","blog_faq_schalter":"ja","faq_uberschrift":"FAQ - H\u00e4ufig gestellte Fragen zum Hochfrequenzhandel","blog_faq_loop":[{"blog_faq_question":"Was versteht man unter Hochfrequenzhandel?","blog_faq_answer":"Bei Hochfrequenzgesch\u00e4ften f\u00fchren leistungsstarke Computer automatische Trades in unglaublicher Geschwindigkeit aus. Es kann Gewinne scheinbar aus dem Nichts erschaffen und steht daher auch durchaus in der Kritik. Hochfrequenz-Trading ist streng reguliert."},{"blog_faq_question":"Wer profitiert vom Hochfrequenzhandel?","blog_faq_answer":"High Frequency Trading ben\u00f6tigt teure Hochleistungscomputer und latenzsenkende Technologie, die f\u00fcr private Trader quasi unzug\u00e4nglich ist. Folglich profitieren fast ausschlie\u00dflich professionelle H\u00e4ndler und Finanzinstitute vom Hochfrequenz-Trading.\r\n\r\n&nbsp;"},{"blog_faq_question":"Wie funktioniert Hochfrequenzhandel?","blog_faq_answer":"Extrem leistungsf\u00e4hige Computer stehen \u00fcber schnellstm\u00f6gliche Verbindungen mit den Servern der B\u00f6rsen in Kontakt. Sie reagieren in Mikrosekunden anhand vorgefertigter Algorithmen auf Marktbewegungen und erzeugen kontinuierlich kleine Gewinne."},{"blog_faq_question":"Ist Hochfrequenzhandel legal?","blog_faq_answer":"Das High Frequency Trading ist in Deutschland grunds\u00e4tzlich legal, unterliegt aber strengen Regulierungen. Wer die Definition f\u00fcr diese Trading-Form erf\u00fcllt, ben\u00f6tigt eine Erlaubnis nach dem Hochfrequenzhandelsgesetz. Zust\u00e4ndige Stelle ist in Deutschland die BaFin."}]},"_links":{"self":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/blog\/46301","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/blog"}],"about":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/types\/blog"}],"author":[{"embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/users\/20"}],"version-history":[{"count":3,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/blog\/46301\/revisions"}],"predecessor-version":[{"id":65992,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/blog\/46301\/revisions\/65992"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/media\/46254"}],"wp:attachment":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/media?parent=46301"}],"wp:term":[{"taxonomy":"blog-kategorie","embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/blog-kategorie?post=46301"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}