algorithmic trading

Computer-executed market transactions

Algorithmic trading uses computer programs to execute trades in financial markets based on predefined rules and mathematical models.

The algorithms can analyze market data, identify opportunities, and place orders far faster than human traders—often in milliseconds.

This approach dominates modern stock, currency, and commodity markets, accounting for the majority of trading volume.

High-frequency trading is an extreme form that exploits tiny price differences across markets or fleeting market inefficiencies.

Related

linear regression · order book · colocation · neural networks · derivatives · scalping · slippage · quant · cloud computing · signal processing · latency · server farms · milliseconds · signals · Bloomberg · systematic · Wall Street · alpha

Categories
Opposites
decision-making method

algorithmic tradingvalue investing

Buying underpriced stocks fundamentally

active management · stock picking · impact investing

Family

trading, algorithm

Familiarity
Top 500,000
Profile
Used worldwide · Timeless · Abstract · Rated G