What You Should Know Regarding Algorithmic Trading
The algorithmic trading has greatly increased in the past years. This helps in improving such market quality and should this be encouraged? Well, there are so many of those who say that algo trading does help in improving the liquidity and would also boost the informativeness of the prices and quotes.
The big reason why such algorithmic trading has really become quite popular is because of the advantages which holds over trading through the manual method. The benefits of such algo trading are related to accuracy, speed and also reduced costs. Due to the reason that such algorithms were written in advance and done manually, then the main benefit is speed. Speed in which the different trades are done is being measured in just fractions of a second which is much faster than what the humans can perceive.
Algorithm trading has the benefit …