WHAT IS ALGO TRADING ?
Today many people don’t have a clear concept about Algo trading in India. Algo(Algorithm) trading makes use of a computer program or software to place a trade using an algorithm.What is an Algorithm? An Algorithm is a pre-specified group of instructions that are already present in algorithm trading software. This trading is not like human – emotional.
It efficiently begins to monitor the prices of the given stock. And it automatically purchases the shares and sells them when the given criteria get matched.
ALGORITHMIC TRADING is a method of executing orders using automated pre-programmed trading instructions accounting for variables such as
time, price, and volume. This type of trading attempts to leverage the
speed and computational resources of computers relative to human traders. In the twenty-first century, algorithmic trading has been gaining traction with both retail and institutional traders.It is widely used by investment banks, pension funds, mutual funds, and hedge funds that may
need to spread out the execution of a larger order or perform trades too
fast for human traders to react to. A study in 2019 showed that around 92%
of trading in the Forex market was performed by trading algorithms
rather than humans
WHY CHOOSE US..?
SEBI (Securities and Exchange Board of India) introduced and allowed algorithm trading in India in 2008.
In the developed markets presently, the share of Algo trading goes up to 80 percent, while in India it is around 50 percent. In the upcoming years, Algo will acquire 95% of its market shares. In a nutshell, the future of Algo trading is in light.
Benefits Of Algo Trading
- Minimize human errors
- Minimize emotions
- Backtesting
- Instill discipline
- Save time & energy
- Intellectual engagement
- Trade with speed
- Diversify trading