Algo Trading

Algorithmic trading, or algo trading, is a technology-driven approach to financial markets where pre-programmed algorithms execute trades based on defined criteria such as price, volume, timing, or market trends. This method leverages computational power to execute trades at high speed and precision, minimizing human error and optimizing efficiency. Commonly employed in equities, forex, and derivatives markets, algo trading enables traders to exploit market opportunities with consistency and scalability. While it offers significant advantages, such as improved execution and reduced emotional bias, it requires robust infrastructure, advanced coding skills, and vigilant risk management to ensure effectiveness.