Algorithmic trading is also called automated trading, black-box trading, or algo trading. It uses a computer program that follows a defined set of algorithms to place a trade. Many software development companies create software for algo trading in India. The trade, in theory, can generate profits at a speed and frequency that is impossible for a human trader to do manually. The particular sets of instructions are based on timing, rate, quantity or shares, or any mathematical model.
Apart from profit opportunities for the trader, algo trading provides the market with more liquidity, and trading in a more systematic way by ruling out the impact of human emotions on trading activities.
An algorithm is a specific set of clearly defined instructions to carry out a task or process. There are instances when a human trader isn’t able to handle multiple numbers of trading, and that’s when you need the help of an intelligent algorithm. Custom software companies provide customized services for algo trading.
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