Algorithmic trading is that form of trading which uses pre-programmed trading conditions to fulfill orders in real time on the exchange. Since 2008, algorithmic trading has gained popularity in Indian markets, and they efficiently use market inefficiency for their good. Automation is a natural way for any technology in the future. Since investment is a process - it will translate into algorithmic trade better. Despite the fact that Algo's trade is at the initial stage in India, it accounts for almost 50% of total trade. The amount is quiet low, compared to the US and UK markets, where more than 90 percent of trades (on much larger volumes) are performed using algorithms. The Indian market provides decent opportunities for Algo trader
The Indian market is taking a growing trend and demand for HFT (high-frequency trading) and algorithmic trade, educating its members about technology. It, in turn, helps them develop the skills necessary to understand the complications in the trade. With the further development of the market daily, statistical models require constant tuning. It is already obvious that investors use algorithmic trading to customize algorithms and automate their trading strategies to manage their goals. We can also find the use of artificial intelligence solutions that have the capability to adapt to the changing market needs. Such systems use news, satellite images, social networking channels, etc. to predict market trends. However, the introduction of algo trading in the Indian stock markets- one of the most liquid open markets in the world- is set to improve the trading market.
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