What does the term "algorithmic trading" involve? 🔊
The term "algorithmic trading" involves using complex algorithms to automate the buying and selling of financial securities in the stock market. This approach relies on mathematical models and quantitative analysis to identify trading opportunities based on various market indicators and conditions. Algorithmic trading can execute trades at high speeds and volumes, often outperforming human traders by eliminating emotional decision-making and allowing for precise, data-driven strategies. By employing specified rules and trading parameters, it aims to maximize returns while minimizing risks.
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