Algo Trading

Algorithmic trading is a process for executing orders exercising automated and pre-programmed trading instructions to regard for variables similar as price, timing and volume. An algorithm is a set of directions for working a problem. Computer algorithms shoot small portions of the full order to the request over time.

Algorithmic trading makes use of complex formulas, combined with fine models and mortal oversight, to make opinions to buy or vend fiscal securities on an exchange. Algorithmic dealers frequently make use of high- frequency trading technology, which can enable a establishment to make knockouts of thousands of trades per second. Algorithmic trading can be used in a wide variety of situations including order prosecution, arbitrage, and trend trading strategies.