A Brief Guide to Algorithmic Trading

A Brief Guide to BUSINESS

LegacyFX Introduction

ALGORITHMIC TRADING

A

lgorithmic trading can be utilised to improve trading across a wide variety of situations.

High-Frequency Trading Traders can utilise algorithms to facilitate high-frequency trading, which can enable a firm or financial

ALGORITHMIC TRADING Algorithmic trading is the name given to the process of automating trading through pre-programming instructions to be carried out according to set factors and variables. These can include price, volume and timing.

institution to execute hundreds or even thousands of individual traders per second. The complex formulas that underpin algorithmic trading provide instructions to the computer to execute certain types of trades as soon as pre-programmed conditions are favourable.

ALGORITHMIC TRADING IS PART OF THE ROBUST TOOL OFFERING OF THE LEGACYFX PLATFORM.

Risks

Rewards

There are various risks associated

The key advantages to trading firms

with algorithmic trading. Without

of using algorithmic trading are

human oversight, algorithms can

reduced costs and the ability to exe-

cause immediate lack of liquidity or

cute multiple trades simultaneously.

flash crashes in the market by exa-

It can be particularly beneficial for

cerbating negative tendencies.

large order sizes or where firms wish to create market liquidity.

YOU CAN LEARN MORE ABOUT THIS BY VISITING THE LEGACYFX BLOG.