After allowing algorithm trading for institutional investors, the market regulator has proposed norms that will allow retail investors to engage in the technique safely.
Imagine a scenario where you don’t have to keep checking on your investments or trade in derivatives without fear? What if a computer programme can trade for you, taking into account all developments that have a bearing on the stock market? Sounds too good to be true, right?
Well, it is possible through algorithmic trading, a method widely used by large financial institutions.
Algorithm trading or algo trading is a type of trading that uses a computer programme to automatically execute orders based on pre-set rules and parameters like price, time and volume. On Friday, the Securities and Exchange Board …
Disha is a writer at The Morning Context. She has previously worked at the digital production desk of Reuters. Prior to that, she was a sub-editor at Deccan Herald.
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disha@mailtmc.com
Bengaluru