Algorithmic Trading
Algorithmic trading (or algo trading) refers to the use of computer algorithms to automatically buy and sell securities based on a set of predefined rules. These rules can be triggered by factors like stock price, trading volume, time, or other market conditions. Algo trading aims to execute trades at optimal prices and speeds, minimizing human intervention and errors. It is widely used by institutional investors to improve efficiency, reduce costs, and take advantage of market opportunities in real-time. The strategy allows for high-frequency trading, which can be more precise and faster than manual trading.
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