Algorithmic 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 ?
Proprietary trading algorithm provider, Global Trading Systems LLC, has hired an executive from Credit Suisse (NYSE CS).
In the wake of a string of confidence-killing mishaps related to equities trading -- the most notable being the manipulation of more than 140 public issues by a trading algorithm gone berserk earlier in August -- some are also suggesting the shift to lower trading volumes might be more permanent: Investors are simply not coming back to the Wild West of stock trading anytime soon.
Through this non-exclusive agreement, each trading algorithm provided by Exane BNP Paribas can deliver distinct real-time alerts, which are based on pre-determined signals and market conditions, directly to the EMSX blotter using the Financial Information eXchange (FIX) protocol.
NYSE:KCG) saw shares in the company drop precipitously Monday -- at one point losing more than 7 percent of their value -- as the bruised broker-dealer continued to pick itself up less than two weeks after a trading algorithm gone berserk saddled the firm with $440 million in losses.
Global Banking News-January 11, 2012--Citi launches pairs trading algorithm for equity securities(C)2012 ENPublishing - http://www.
The Company's states that its proprietary, trainable, trading algorithm assets analyze price data and uncover opportunities.
html) a report by market technology firm Nanex LLC that attempts to explain just exactly what happened at Knight Capital last week, when a rouge trading algorithm prompted a market debacle that wildly distorted the price of hundreds of New York Stock Exchange issues, costing Knight $440 million to get out of the jam.
NAHD's revenue model will be based on receiving a percentage of trading profits achieved by our clients that will utilize our trading algorithm.
NEW YORK, April 17, 2015 /PRNewswire/ -- DASH Financial, a leading Institutional agency broker devoted to bringing unfettered transparency to the US options and equities markets, announces the debut of BLITZ, its newest trading algorithm focused on aggressive liquidity capture.
Grant Kiehne's stock trading algorithm will manage $100,000 for 6 months, then he takes home all the profits.
27, 2013 /PRNewswire/ -- ConvergEx Group , a leading technology company, today announced that it is now offering a new premarket trading algorithm that allows customers to capture liquidity outside of traditional market hours.
Developed for over two years based on ongoing and extensive consultation with the market, the dynamic platform will for the first time provide customers with an amalgamation of EBS s microstructures along with advanced trading algorithms and integrated visual analytics.