Algorithmic Trading
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Definition:
Algorithmic Trading is the use of computers to submit trade orders in which complex algorithms are used to decide buy/sell prices, timing of trades, and order quantities. It is used by hedge funds, mutual funds, and pension funds (as well as other institutions) to split up large block trades into smaller batches as a way not to greatly affect stock price/purchase costs.
Related Concepts:Block Trade
Electronic Trading
Market Making
Statistical Arbitrage
Available Positions Related to Algorithmic Trading: |
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