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In High-Frequency Trading, Which Aggregation Method Is Preferred and Why?

Off-chain is preferred for HFT because it offers lower latency and lower gas costs, which are critical for fast, profitable execution.
Greeks.Live20.11.25

In High-Frequency Trading, Which Aggregation Method Is Preferred and Why?

Off-chain aggregation is generally preferred for high-frequency trading (HFT) due to its significantly lower latency and gas costs. HFT strategies require near-instantaneous data updates to execute trades profitably.

On-chain aggregation's inherent delays (due to block times) and high, variable gas fees make it unsuitable for the speed and cost-sensitivity required for HFT, where every millisecond and penny counts.

Define “Latency” in HFT and Explain Its Critical Role in Execution
How Does ‘Latency Arbitrage’ Affect the Execution Quality for non-HFT Traders?
What Is the Difference between Gas Limit and Gas Price?
What Is ‘Latency’ in HFT and Why Is It Critical for a Market Maker’s Ability to Maintain a Tight Spread?

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