Algo / Algorithmic trading Basics

Algo trading is the new game of stock trading without any manual interventions using state of the art automatic programs which acts as robot to buy and sell stocks as per the rules of the game. 16% of India runs on Algos today. It will grow beyond 50% in the next 4 years.

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Algorithmic trading (automated trading, black-box trading or simply Algo-trading) is the process of using computers programmed to follow a defined set of instructions (an algorithm) for placing a trade in order to generate profits at a speed and frequency that is impossible for a human trader.