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.
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