What does a high frequency trader do?

I've heard about high frequency trading but don't fully understand it. What does a high frequency trader actually do, and what kind of qualifications are needed? Is it a viable option after high school?

A high-frequency trader is a type of professional who uses algorithms and advanced technology to trade on the stock market at very rapid speeds. These traders might hold a position for mere seconds (or even less), taking advantage of minuscule shifts in price to make a profit.

The day-to-day duties of a high-frequency trader may include designing and maintaining these trading algorithms, monitoring their performance, and adjusting them as necessary. They also have to keep up to date with market trends and regulations.

The qualifications needed for this sort of role typically include, at a minimum, a bachelor's degree in a field like finance, economics, or computer science. The role often also necessitates strong mathematical skills, a high level of computer literacy, and knowledge of financial markets. Increasingly, traders use complex machine learning algorithms, so knowledge in this area can be a big plus.

As for entry into the field right after high school, it's generally not a viable option. In most cases, the requisite knowledge and skills are picked up during a bachelor's degree program or extensive on-the-job training. Furthermore, jobs in high-frequency trading are highly competitive and prefer individuals with relevant work experience.

However, high school students interested in this path can start preparing by taking mathematics and computer science courses, focusing on gaining strong analytical skills, and keeping up to date with financial news. Later, they might select relevant college programs and internships to further develop their expertise and network in the field.

In summary, high frequency trading is a specialized, fast-paced field that usually requires advanced mathematical knowledge, understanding of financial markets, and proficiency in computer science. While it can be an exciting and lucrative career, it's important to note that it can also be stressful, given the high-stakes nature of finance and the fast speed at which trades are made.