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er programs that generate buy and sell orders and make lightning-quick trades It is the automated execution of trading orders decided by quantitative market models.
Objectives:
Minimize cost compared to a defined benchmark Maximizing fill rate Minimizing execution risk More reliable and faster execution platforms (computer sciences) More comprehensive and accurate prediction models (mathematics)
Electronification of Markets
Improve Scale & Efficiency Desire for Anonymity Realization that Trading Is a Source of Incremental Alpha Desire to Reduce Explicit and Implicit Trading Costs
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6. 7. 8.
BROKER
Exchanges
Contd
Integrate Real-time News into Algorithmic Trading Design for Low Latency Decisions
Safety
Conclusion
Algo trading is a very competitive field in which technology is a crucial factor. With the help of the algorithmic trading system the trade activity becomes faster. But after all it is totally depends on the technology There are lots of example of crashing in the market due to algorithmic trade system. So one has to not depend fully on the algorithmic system.