How Algo Trading Software in India are Powering the Stock Market Trading

As technological advancements are incorporated in almost every sector, the stock market is no exception. It utilizes Algo trading software for executing trades automatically in the financial market. The software is usually programmed with an algorithm that uses algorithms and data from the past to predict what will happen in the future. It is designed to take into account market conditions, economic trends, and other factors to maximize returns for the investor. This blog has listed down the five best Algo trading software in India and where you can find them.

Four best Algo trading software in India

While stepping into the world of Algo trading, picking the best Algo trading software in India is vital for maximum benefits. Here are the top four algorithmic software solutions which you can give a shot at through Findoc. Let us dive deep and learn about each of them:

1      XTS (Symphony): It is an advanced system for multi-asset trading in varied financial markets and lets you streamline everything related to the retail and institutional trading business. XTS aims to boost efficiency, transparency, and performance to provide you a competitive edge in the stock market. 

This algorithmic trading software comprises progressive front-ends like mobile, web, and TWS, alongside OEMS or order execution management systems. Besides, it offers a risk management system, connectivity for direct exchange, compliance management, and market analytics. XTS monitors and reports extensively to provide a unified trading experience and interface across versatile exchanges and liquidity providers.

2      Greek: It enables trading hassle-less, especially between two different stock exchanges, with its cash-to-cash strategy. The users can trade in equities across inter-exchange dissemination with few clicks and minimum adjustments in the strategy. The Greek's unswerving algorithm facilitates portfolio management without any hassle.

Once you have determined and fixed the desired algorithm parameters, Greek looks after the execution alongside the hedging of the funds. Using this software automatically mitigates the loss, targeting and positioning the size of every trade. Hence, you can buy the stocks at lower prices and sell them at higher ones. It is beneficial for technical traders, jobbers, intraday traders, and traders that require resistance or support.

3      Omnesys: It is one of the top front-runners in the segment of proprietary trading. It offers diversified programming models to assist traders/programmers regarding strategy development and tactical decision-making. The best aspect of this software is its user-friendliness. You can assess it with optimal convenience due to its compatibility with a laptop, mobile, and other gadgets. Omnesys lets you view and evaluate the details of your investments and trading around the clock.

This algorithm software comprises all the vital tools required to facilitate crucial trading functions. Likewise, it offers order management, automated, Algo-driven trading, intelligent order routing, and direct accessibility to the market. Apart from these, Omnesys provides back-office solutions and refined risk management in a single platform for better approachability.

4      UTrade: This software can execute trades within ten microseconds without compromising consistency or reliability. It aids you in trading across equities, FX, commodities, futures, options (F&O), and other listed assets through the global stock exchanges. 

UTrade comes with more than fifty services encircling algorithmic trading with built-in multiset strategies concerning arbitrage, market analysis, and trade execution. Its system is also compatible with intelligent order routing, TBT or tick-by-tick data subscriptions, managing large trades execution, and block trading. Besides these, UTrade supports portfolio management, historical back testing, trade simulation, and many other solutions associated with the capital market.

What are the varied strategies leveraged by algorithmic trading software?

The strategies used by Algo trading software in India can be classified into two types: pre-programmed strategies and adaptive strategies. Pre-programmed strategies are pre-determined rules that are programmed into the algorithm. Adaptive strategies, on the other hand, are algorithms that change their parameters based on changes in market conditions. The aforementioned Algo trading software variants, which are deployed by Findoc, use the following strategies:

1      HFT Scalping: This strategy focuses on making money for the investor by taking advantage of small price fluctuations in the market while minimizing risk exposure. It is a profitable investment strategy for short-term trading in the stock market. It helps identify opportunities in the market at shorter time intervals.

2      Quote-Based Strategies: It considers price quotes to identify trading opportunities. The idea is to buy stocks when they are trading at a low price and sell them when they are trading at a high price. This strategy can be applied to both individual stocks and stock indices.

3      Bidding Based on Implied Volatility (IV): Implied volatility is a measure of the market's expectations of the future price movement of a particular asset. The more volatile the stock, the higher its implied volatility will be, and vice versa. This strategy enables bidding based on the investor's defined IV on Option Instrument and hedges it in the future, options, or equity.

4    Arbitrage Opportunities: They aid investors in making money by taking advantage of price differences between two or more markets. The most common arbitrage opportunities are currency arbitrage, interest rate arbitrage, and commodity arbitrage.

5.    Statistical Arbitrage: It involves taking advantage of slight price differences in securities or financial instruments related to the same underlying asset. The basic idea behind this strategy is that if you can find security with a lower average price than another security, you can buy it and sell it later at a higher price. This will result in a profit when the security's average selling prices converge back to their normal levels.

How to make the most out of an Algo trading desk?

The first step is to select the ideal platform, such as Findoc, and open your DEMAT account to begin with Algo trading. Here are the following benefits this trading platform offers:

1      Live demo regarding algorithmic trading and strategies

2      Training related to software applications and executing strategies

3      Strategy building and risk mitigation

4      Boot camps and training sessions with market experts and professional traders

If you want to reap optimal benefits out of Algo trading, Findoc is a great platform, to begin with. This trading platform offers comprehensive assistance to investors by educating and backing them up on algorithmic trading, pumping their funds into profitable financial assets.