Evaluation of High-Frequency Prediction Approaches in Price Determination on Financial Markets

Autores/as

DOI:

https://doi.org/10.31637/epsir-2025-1100

Palabras clave:

algorithmic trading, financial markets, high-frequency trading, liquidity, market volatility, price discovery, risk management, trading algorithms

Resumen

Introduction: This communication examines the impact of high-frequency trading (HFT) and algorithmic trading on financial markets. HFT utilizes sophisticated algorithms for ultra-fast transactions, optimizing profits and minimizing risks. Methodology: The study explores how HFT contributes to market efficiency and liquidity while also highlighting the risks of increased volatility, particularly during periods of market stress. Results: HFT algorithms improve liquidity but can amplify price fluctuations, challenging investors and financial institutions. These effects can create instability, especially in volatile market conditions. Discussion: The communication stresses the need for regulations to balance the benefits of HFT—such as efficiency and liquidity—against the risks posed by increased market volatility. Conclusions: While HFT offers significant benefits for financial markets, ongoing study and regulation are essential to ensure the stability and integrity of these markets.

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Biografía del autor/a

Abdelghani Rahmouni, Université Ibn-Tofail

Is currently a PhD candidate at the Laboratory of Economics and Management of Organizations, Faculty of Economics and Management, Ibn Tofail University, Kenitra. holds a Master’s degree in Economics, Finance Markets from FSJES FES and a Bachelor’s degree in Economics and Management.

Mohamed Mansouri, Université Ibn-Tofail

Is a part-time lecturer and researcher in economics and management. He holds a PhD in Economics and Management from the Faculty of Economics and Management, Ibn Tofail University, and a Master's degree in Accounting, Control, and Auditing.

Cheklekbire Malainine, Université Ibn-Tofail

He is a professor of higher education at the Faculty of Economics and Management in Kenitra and a researcher specializing in exchange rate dynamics and economic policy.

Citas

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Publicado

2025-01-20

Cómo citar

Rahmouni, A., Mansouri, M., & Malainine, C. (2025). Evaluation of High-Frequency Prediction Approaches in Price Determination on Financial Markets. European Public & Social Innovation Review, 10, 1–15. https://doi.org/10.31637/epsir-2025-1100

Número

Vol. 10 (2025)

Sección

Comunicación

Licencia

Derechos de autor 2025 Abdelghani Rahmouni, Cheklekbire Malainine

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