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

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 Significance of ‘Co-Location’ in HFT Infrastructure?

How Does High-Frequency Trading (HFT) Relate to Spoofing Allegations?

Contrast the AMM Model with the Traditional Central Limit Order Book (CLOB)

What Is ‘High-Frequency Trading’ (HFT) and Its Relation to Latency?

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

What Is ‘Latency’ and Why Is It a Critical Factor in HFT Profitability?

How Does Latency Affect Execution Quality on Both RFQ and CLOB Platforms?

How Is Transaction Latency on a Blockchain Analogous to Market Data Feed Speed in Traditional High-Frequency Trading?