Month: June 2021

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What is Algorithmic Trading?

June 28, 2021 admin Comments Off on What is Algorithmic Trading?

Every minute the stock market is open, tens of thousands of transactions occur. Some of them happen when investors hit the buy or sell button. However, a majority of them happen automatically, through a process called algorithmic trading. What is algorithmic trading? It’s computerized, automated trading that happens without any human intervention. Computers trade based on predetermined rules, and execute buy/sell orders within specific parameters.
Algorithmic trading happens instantly, which gives traders using computerized trading software the edge. But, while there’s tremendous upside to algo-trading (as it’s called), there are also a couple of hidden drawbacks. Let’s explore them both, …read more […]