High Frequency Execution

High frequency execution refers to the ability to submit and process a large number of trades in a very short period of time. In traditional markets, this is the standard, but on blockchains, it is severely limited by network congestion, block times, and gas fees.

For derivative traders, achieving high frequency execution is essential for strategies like market making, delta hedging, and arbitrage. To overcome the limitations of the main chain, many traders are moving to layer two solutions or using private execution services.

The pursuit of high frequency execution is driving significant innovation in blockchain infrastructure and trading software. It is a key requirement for the maturation of decentralized derivative markets.