DIP: 18.02.013/20251003 
DOI: 10.25215/2455/1003013 
Abstract
High-Frequency Trading (HFT) has transformed modern financial markets through the use of advanced algorithms and ultra-fast data processing. This study explores the impact of HFT on market stability and small-investor welfare by critically analyzing empirical evidence and theoretical models. While proponents argue that HFT enhances liquidity and price efficiency, critics highlight its potential to exacerbate market volatility and create an uneven playing field for retail investors. The research reveals that although HFT can improve market functioning under normal conditions, it may amplify systemic risks during periods of stress. Additionally, the technological and informational advantages held by HFT firms can marginalize small investors, affecting their confidence and participation in the market. This paper underscores the need for regulatory frameworks that ensure fair competition, mitigate flash crashes, and protect market integrity without stifling innovation.
The author(s) appreciates all those who participated in the study and helped to facilitate the research process. 
The author(s) declared no conflict of interest. 
ISSN 2455-670X