What is Algo trading?
What is Algo trading? Find a clear answer in this FAQ by 021 Trade.
Algorithmic trading (algo trading) uses predefined rules in a computer program to identify trading opportunities. These rules can be based on factors such as price, timing, or quantity. When the specified conditions are met, the algorithm generates buy or sell signals.
However, for retail traders, full automation is generally not permitted, so the actual orders must be placed manually. Even so, algo trading helps traders analyze market conditions quickly and make faster, more efficient trading decisions compared to purely manual trading.
