Algorithmic Trading
Algorithmic trading refers to the use of computer algorithms to automate the process of buying and selling financial securities in the markets. This form of trading employs mathematical models and set rules to execute trades based on specific criteria, such as price, timing, and volume. The primary goal of algorithmic trading is to optimize trading strategies and enhance execution efficiency by reducing human intervention, minimizing emotional decision-making, and capitalizing on trading opportunities at speeds and frequencies that would be impossible for human traders. Algorithmic trading is widely used in various financial markets, including stocks, forex, and commodities, and can encompass strategies such as market making, arbitrage, and trend following.