Algo Trading

Page 1

Algo Trading

Algorithmic trading is a formalized process of executing trading operations at the financial markets with a help of algorithm, using the specialized computer systems – trading robots. Despite the variety of existing algorithmic strategies some of them use the basic principles and similar methods, which allows to unite them in different groups.

There are 2 big categories: execution strategies and speculative strategies, according to their final purpose. The first category solves the problem of selling-buying of a big volume of financial instruments with the minimum deviation of the final average price of the transaction from the current market price of the instrument.


The main purpose of speculative strategies is getting profit within a short time period due to the changing of market prices of the financial instruments. This category includes market making, front running, volatility trading, arbitrage, pair trading, basket trading, trend following and lowlatency trading.

Algo Trading or Algorithmic trading is widely used by the institutional investors for effective execution of big orders as well as by the private traders and hedge funds for getting the speculative profits.

CFD1000 clients can also use Algo Trading in order to make their trading experience excellent, with minimum risks and mistakes. You can be sure that all financial news and its daily analysis will be made in the best way. Start trading with CFD1000 and fell the advantages of Algorithmic Trading with us!


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.