---
title: High-frequency trading and stock price crash risk
url: https://www.ml-quant.com/papers/ssrn/4705469/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4705469
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4705469
featured: 2024-01-30
citations: 0
topic: Trading, Microstructure & Execution
---


# High-frequency trading and stock price crash risk

High Frequency Trading (HFT) increases the risk of stock price crashes by over 80%, especially in larger firms, due to increased liquidity and less informative stock prices.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4705469
- Identifier: SSRN 4705469
- Released: 2024-01-24
- First featured: Quant Letter No. 35 (2024-01-30): https://www.ml-quant.com/issues/2024-01-30/
- Citations (Semantic Scholar): 0
- Published in: not yet
- Topic: Trading, Microstructure & Execution

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