Algorithmic trading refers to the use of computer algorithms to automate the process of buying and selling financial securities on behalf of investors. This technology employs mathematical models and trading strategies to execute trades at optimal prices and speeds, minimizing human error. Algorithmic trading enhances market efficiency, enables high-frequency trading, and lowers transaction costs. It is widely used by institutional investors, hedge funds, and trading firms to gain a competitive advantage in financial markets. By leveraging advanced analytics and real-time data, algorithmic trading helps in better decision-making and risk management practices.