Algorithmic Trading
Category: infrastructure
The use of computer programs to execute trades based on pre-defined criteria.
Algos are the "machine-speed" traders. They execute thousands of orders in milliseconds. They are used for arbitrage, market making, and index tracking. They have largely replaced human floor traders in modern equity and derivative exchanges.
Common Examples
- Algorithmic trading accounts for the majority of daily volume in large-cap stocks, ensuring tight bid-ask spreads.
- We employ algorithmic trading strategies to automate our market-making liquidity operations with extreme consistency and speed.