Electronic trading increasingly uses programs in which a computer algorithm makes autonomous decisions according to predefined rules and determines, adapts and transmits the related order parameters in line with these rules (algorithmic trading). Some algorithmic trading programs are capable of generating, amending, or cancelling a large number of buy and sell orders within extremely short time intervals. This is referred to as high-frequency trading. As a rule, market participants engaging in high-frequency trading only enter into positions in financial instruments for a short time.
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