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Algorithmic Trading
(redirected from Algo Trading)

   Also found in: Wikipedia 0.01 sec.
Algorithmic Trading
A computerized trading system that institutional investors use to make large transactions in securities while affecting their prices as little as possible. Algorithmic trading uses complicated mathematical formulas to identify the ideal times to buy and sell securities in large batches. Usually, algorithmic trading involves dividing trading a large number of securities as smaller groups so as not to cause panic buying or panic selling. Algorithmic trading contrasts with program trading, which is also a computerized system but does not attempt to minimize price changes. Algorithmic trading is also called black box trading.


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Aite Group Senior Analyst Adam Honore and Tervela CEO & Founder to Discuss Strategies for Seeking Alpha in Precipitous Financial Climate NEW YORK, March 4 /PRNewswire/ -- Tervela, the leading provider of high-performance, low-latency messaging systems, will be hosting a complimentary webinar with Aite Group entitled "The Execution Advantage of Algo Trading - Seeking Alpha in a Precipitous Financial Climate" on Wednesday, March 11 at 1 p.
Tomoyoshi Uranishi Senior Executive, Tokyo Stock Exchange [ILLUSTRATION OMITTED] While the use of Internet-based accounts has certainly been a factor in the rise in retail stock trading, the penetration of algo trading has been the primary driver behind the increase in overall volumes--including the larger ticket institutional orders, according to TSE Senior Executive Tomoyoshi Uranishi.
Algo trading is automated, meaning that the trader leaves it up to the computer to decide when to buy and sell.
 
 
 
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