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.
- stocksOwnership stakes or inventory
- arbitrageExploiting price discrepancies
- liquidityConvertibility to cash
- flash crashSudden, brief securities collapse
- codeSymbolic communication system
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
- fintechfintech, mobile banking, digital wallet, mobile payment, digital wallets
- stock marketstock, shares, stocks, stock market, trader
- brokeragebrokers, commissions, fees, brokerage accounts, dealers
- Online Tradingbuy order, sell order, market order, limit order, broker
- Quant Tradingquants, backtesting, arbitrage, signals, bots
- Trading Strategiesscalping, arbitrage, pyramiding