What is Algo Trading

CLOSE X

Knowledge Centre

Knowledge is power
Information is liberating
Education is the premise of progress, in every society

Equity | July 16

What is Algo Trading?

Algorithmic trading or algo trading is an automated computerized method of stock trading. It has been designed to help traders to minimize their trading costs and efforts. Algo trading involves trading through a program that uses advanced and complex mathematical formulas to make speedy and smart transactions.

Algo trading helps you to place a purchase or sale order at your convenience, automatically generating the timingbased upon the parameters specified by the trader. There are no limitations related to the quality and volume of trade.

Algo trading enables you to trade on every opportunity. You not only avail each and every market opportunity but also benefit from risk reduction in case of bigger portfolios. Algo trading includes automated checks, which help you in controlling risk factors.

With an effective Order Management System (OMS) and emotion-free trading, it increases your profitability. This is an outcome of a minimal time lag as the quick execution of trade provides you the best price.

Though Algo trading is not extremely popular at the moment, it is gradually gaining faith as one of the most profitable forms of trading online among investors. Here we are listing seven major benefits of algo trading:

1. Trade on every opportunity

2. Get the best price through quick execution

3. Increases profitability by minimizing time lag

4. Emotion-free trading for best results – eliminates humanly limitations

5. Backtesting of strategies

6. Automated checks for risk reduction, especially with the bigger portfolios

7. Quick and easy trading that drives the best results

Since algo trading comes with so many benefits, various platforms in the Indian finance market are supporting this form of trading. Many of these platforms are allowing both institutional and retail investors to trade through Algo trading or algorithmic trading.

Algo trading is the future of trading in the Indian stock market. Have you tried it yet?

Get started now!

COMMENTS

No Comments Found

Contact Us

Get OTP

Categories

Equity10 Ipo2 Algo Trading8 Stock Market3 Loans3 Investment7 Commodities3 Economy1 Currency3 Mutual Fund6 Derivative3 Share Market1 Depository Services3 Currency Hedging4 Insurance3 Fixed Income3

Important Message The information contained in this file is provided for informational purposes only, and should not be construed as legal advice on any matter. The content and interpretation of the law addressed herein is subject to revision. We disclaim all liability in respect to actions taken or not taken based on any or all the contents of this file to the fullest extent permitted by law. Every effort is made to avoid errors. In spite of that, errors and discrepancies may creep in. It is expressly stated that neither Findoc Investmart Private Limited nor any of the contributors of updates will be responsible for any damage to anybody on the basis of this document. Readers are, therefore, requested to cross check with the original sources e.g. Government publications, Orders, Judgments etc., before taking any action or making any decision. These services are being provided through our group companies Findoc Capital Mart Pvt Ltd and Findoc Finvest Private Limited

Attention Investors

1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.
2. Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.
3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries forrefund as the money remains in investor's account."

Prevent Unauthorized Transactions in your demat account --> Update your Mobile Number with your Depository Participant. Receive alerts on your Registered Mobile for all debit and other important transactionsin your demat account directly from NSDLon thesame day......................issued in the interest of investors."