Algo Trading

Description

Algorithmic Trading (also known as Strategy Trading or Automated Trading) uses a dedicated 3rd party server to automatically enter orders given certain rules and parameters. This can be used by large market participants to effectively execute trading strategies with minimal manual effort.

Technically, the algorithmic engine runs on a server for a 3rd party vendor. The trading provider programs this server by defining a number of named Strategies. For each Strategy a number of input parameters is defined. The list of available strategies and their parameters is sent to the end user during the login process. The user selects from the list of strategies, fills in the mandatory parameters and sends the order to the server. Then the algo server monitors conditions such as market prices, volumes, time etc and enters and cancels orders to try and fulfill the purpose of the strategy.

Access requirements

•Access to Trading server with Algo support

•Access to Algo Trading feature

How to access

•Select the Strategy page of the Trading window

References

Wikipedia on Algo Trading