What is Algorithmic Trading?

Algorithmic trading, also known as automatic trading, and black box trading, uses electronic platforms to enter algorithmic trading instructions to execute pre-set trading strategies. The algorithm contains many variables, including time, price, trading volume, or in many cases, instructions issued by a "robot" without human intervention. Algorithmic trading is widely used in investment banks, pension funds, mutual funds, and other buyer institutional investors to divide large transactions into many small transactions to cope with market risks and shocks. Seller traders, such as market makers and some hedge funds, provide liquidity to the market and automatically generate and execute orders.

Algorithmic trading

Algorithmic trading, also known as automatic trading, black box trading, or machine trading, refers to the use of computer programs to issue
Algorithmic trading-
Order flow computer for financial markets
Transformation began in the early 1970s and is marked by
With traditional markets
In order to meet the needs of different trading strategies, many different algorithms are emerging. These algorithmic tricks are often named by names such as "Iceberging", "Guerrilla", "Benchmarking", "Sniper" and "Sniffer".
More complex models and intelligent programs have raised the question of whether models will fail.
Some people criticize the "black box" feature of algorithmic trading systems: "
The rise of algorithmic trading has brought profound effects and changes to the entire financial market.
The reduction in transaction size caused by the percentile quotation reform may promote the development of algorithmic trading, while algorithmic trading has further reduced the size of transactions. Used to be
In Asian financial markets, algorithmic trading is the main
In China, research on algorithmic trading started very late,
Guo Tai'an's Contributions to the Enlightenment of Domestic Algorithmic Trading Concepts and Market Education
Guotai'an Institute of Finance has successfully held seven sessions of high-end training on algorithmic trading in China in the past two years. Now, as algorithmic trading moves closer to the mainland, Guotai'an Institute of Finance launched a practical advanced workshop on "Focused Algorithmic Trading" in Beijing from October 17th to 18th, 2009. Algorithmic trading, comprehensive training on the principles, strategies, applications, and practical experience of algorithmic trading. As the only institution in China that has hosted relevant training content, this is the eighth time that Guotaian Institute of Finance has organized similar high-standard A series of training programs.

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