Final answer:
High-frequency trading (HFT) is a trading strategy that uses sophisticated computer algorithms to move in and out of stocks in milliseconds to generate short-term profits.
Step-by-step explanation:
The trading strategy that uses sophisticated computer algorithms to move in and out of stocks in milliseconds to generate short-term profits is called high-frequency trading (HFT).
HFT involves the use of powerful computers and complex algorithms to analyze market data and execute trades at extremely high speeds. These algorithms are designed to identify short-term price fluctuations and take advantage of them by buying and selling stocks within milliseconds.
HFT is a controversial practice that has both supporters and critics. Supporters argue that it adds liquidity to the market and improves price efficiency, while critics argue that it gives an unfair advantage to large financial institutions and can contribute to market instability.