Algorithmic trading
Also called: algo trading, high-frequency trading, HFT
Using computer programs to decide and place orders according to set rules.
Execution algorithms split large orders to reduce market impact; high-frequency firms trade very fast at large scale. An algorithm only automates a strategy: without an edge after costs, automation loses money faster. Rules for algorithms offered to individuals are set by SEBI and change over time.
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- Algorithmic tradingWhat is algorithmic trading, and can an individual buy the same edge?
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