Not many brokers are able to conduct high-frequency trading due to high conditions。How this strategy differs from other strategies？Why Oanda was able to embrace this strategy？

Over the years, traders have been able to come up with different strategies to increase their chances of getting profitable trades, one of which is called high-frequency trading。Here's all you need to know about this controversial strategy and how OANDA provides room to apply it。

What is high-frequency trading?

High-frequency forex trading refers to making large amounts of trades and completing them in milliseconds.。Since humans alone cannot achieve these speeds, specialized computer systems must be utilized to succeed。

High-frequency trading methods use several different algorithms to predict when the market may change before it actually changes. The market becomes very liquid in a short period of time, which may cause confusion to traders。Therefore, if you experience a brief period of extremely high liquidity, high-frequency trading may play a role。

OANDA for high-frequency trading

OANDA is one of the very few brokers that allows users to engage in high-frequency trading。The trading platform provides you with REST and FIX APIs, enabling you to make the best decisions for your trading account by creating the perfect trading strategy for you。

In order to use OANDA for high-frequency trading, you need to first create an account on the platform。After creating the account, select the API you want to use for high-frequency trading and request your API token to enjoy trading。

---

OANDA can be an option for traders looking for a precision broker。This is because OANDA is a broker that offers 5-digit accuracy quotes and active price movements that follow market developments.。The broker's orders are also executed faster。

It provides benefits for novice traders because they can use a calculation system based on currency value for smaller trading volumes, which is different from other brokers that use lot systems。

OANDA was founded in 1996 by Dr. Michael Stumm, Lecturer in Computer Engineering at the University of Toronto, Canada, and colleagues at The Olsen Ltd, one of the leading econometric research institutes..Dr. Richard Olsen co-founded the institution。Their headquarters are located in San Francisco, USA。

OANDA Branches Everywhere。Some of these offices are located in the UK, Singapore, Japan and Canada。With the distribution of the number of offices, OANDA increasingly attracts the attention of global customers。

OANDA's companies are registered in several well-known jurisdictions in the field of financial transactions。They are regulated by the US CFTC and NFA, UK FCA, Australian ASIC and others。Traders no longer need to worry about security when trading OANDA。However, these advantages make OANDA's trading rules more stringent than other brokers。

For example, OANDA only allows a maximum leverage of 1: 20 because the rules in the United States and Japan do not allow higher than that leverage。In addition, the registration process is more complicated due to various additional requirements that other forex brokers do not submit。Most importantly, hedging is not allowed in one trading account, as the client must open another account to hedge。

Nevertheless, OANDA is known as a leading broker and offers many advantages。OANDA faces greater market risk during periods of price volatility, such as economic and political news announcements。When market spreads increase or decrease, their pricing engine expands or narrows spreads accordingly。In this way, traders can be more quickly updated on market price movements。

Prices in the market move very quickly, especially when news releases have a large impact on market volatility。Brokers often exploit this situation to take advantage of clients by re-quoting。However, traders do not need to worry about additional fees when trading with OANDA。

Firms never withdraw re-quotes, so traders get maximum profit。When traders cannot monitor open positions, they can set take profit orders to lock in profits and stop loss orders to help prevent further losses。

As an experienced and well-known online forex broker, OANDA is committed to maintaining an efficient trading environment, reducing delays and providing tools to help clients manage acceptable levels of slippage.。

With OANDA's fast and reliable trading platform, customers can trade at 0.Execute within 012 seconds。This is suitable for traders who choose a broker based on execution speed。

Due to this outstanding executive service, it is no surprise that Oanda has won many awards, including the world's best retail forex platform award in the prestigious e-FX awards.。The broker was also rated number one for consistency in executing trades on quote, execution speed and platform reliability.。

There is no minimum deposit or minimum balance requirement to open an OANDA account, both deposits and withdrawals can be done easily。OANDA offers multiple payment method facilities including Paypal, wire transfer, credit and debit cards。Traders can adjust according to the region they live in。

OANDA offers more than 100 trading instruments, including 71 currency pairs, 16 indices, 8 commodities (Brent, copper, corn, natural gas, soybeans, sugar, etc.), 6 bonds and 23 metals.。

fxTrade and MetaTrader platforms available on OANDA。These platforms are available for desktop and mobile devices。Another advantage is that they have OANDA technical analysis in cooperation with Autochartist technical analysis provider。

With these platforms, customers can more easily monitor price movements and automatically identify patterns created on charts and receive alerts when waiting patterns appear。The technology can be used for free。

In summary, OANDA is the ideal broker for traders who need fast execution backed by years of experience.。The firm is also a good choice for those looking for a broker with good regulation and flexible trading and deposit conditions。

Advantages of High Frequency Trading

No one spends a lot of money on computer systems if they're not sure if the program is profitable。One of the main advantages of high-frequency foreign exchange trading is that it significantly improves market conditions by increasing market liquidity。

This in turn enhances market stability.。When the market is liquid, order funds can be transferred more efficiently, which can lead to reduced spreads and may also eliminate arbitrage opportunities。

Disadvantages of high-frequency trading

Importantly, high-frequency trading is not suitable for all investors in the Forex market。As a result, this practice is usually carried out by large companies and other types of organizations without any loss。

This approach is unfair to other players in the market because it shows that it is impossible to compete in the same game without sufficient financial resources。As a result of this factor, the rapid execution and completion of many trades has led to extreme market volatility。There is a risk that the market will suddenly collapse, which will cause the remaining participants to suffer significant losses without their knowledge.。