Algorithmic Trading relies on advanced mathematical models and algorithms to make trading decisions in financial markets. By analyzing vast datasets at high speeds, these algorithms identify patterns, trends, and opportunities that human traders might miss. The reliance on automated systems also reduces emotions in trading, leading to more objective decision-making. Algorithmic trading can enhance liquidity and efficiency in the markets, but it also introduces challenges such as algorithmic risk and the potential for market manipulation. Overall, it plays a critical role in modern finance.