Algorithmic Trading

(redirected from Black-Box Trading)

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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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.