Which Model Is Generally Better Suited for High-Frequency Trading and Why? ▴ Learn

Which Model Is Generally Better Suited for High-Frequency Trading and Why?

The Central Limit Order Book (CLOB) model is generally better suited for high-frequency trading (HFT). HFT relies on rapid order placement, cancellation, and matching, which the CLOB is specifically designed for.

AMMs, especially those on blockchains with slower block times, introduce latency and are susceptible to Miner Extractable Value (MEV) issues, making them less ideal for the speed and precision required by HFT.

What Is the Primary Difference between an RFQ Platform and a Central Limit Order Book (CLOB) for Options Trading?

What Is the Impact of Latency on Execution Quality in Both CLOB and RFQ Systems?

What Is the Primary Function of a Matching Engine in a Crypto Exchange and How Can Its Design Prevent Front-Running?

Define “Latency” in HFT and Explain Its Critical Role in Execution