Algorithmic Trading

(redirected from Black-Box Trading)
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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.
References in periodicals archive ?
That's a cue to bring in black-box trading managers and the likes of the MAN group who continue to make hay even though the sun isn't exactly shining.
The gateways also will connect through TT's X_TRADER API and FIX Adapter to third-party, proprietary and black-box trading applications.
com/research/f90883/chasing_the_same_s) has announced the addition of John Wiley and Sons Ltd's new book "Chasing the Same Signals: How Black-Box Trading Influences Stock Markets from Wall Street to Shanghai" to their offering.
The LOMS Open Strategy Container is designed from the ground up to accelerate high-frequency algorithmic trading applications, providing end users with infrastructure to develop and deploy black-box trading strategies.
It also can connect through TT's X_TRADER API and FIX Adapter to third-party, proprietary and black-box trading applications.
SMDS allows firms to run proprietary trading strategies in-process with SR Labs' market data libraries and achieve fully co-location compliant black-box trading architecture with minimum network overhead and intelligent resource management.
NEW YORK -- With nearly half of all futures markets trades in 2007 currently transacted through automated trading strategies - including market making and quantitative black-box trading activities - a figure estimated to reach 90% of total activity by 2010, the market for automated trading systems capable of managing sophisticated trading demands will continue to grow.
He was a Senior Quantitative Analyst for G-Bar, LLC and Relativity Holdings, LLC where he designed and coded black-box trading systems, backtesting and optimization models from the ground up.