Algorithmic Trading
Category: Industry Applications
Category: Industry Applications
Definition
Algorithmic Trading uses AI to automatically execute trades in financial markets based on predefined strategies and real-time market analysis.
How It Works
AI algorithms analyze market data, news, and patterns to identify trading opportunities. They execute trades in milliseconds, faster than human traders can react.
Machine learning models continuously adapt to changing market conditions and optimize trading strategies.
Why It Matters
Algorithmic trading now accounts for over 70% of trading volume in major markets. It provides liquidity, reduces transaction costs, and enables sophisticated investment strategies.
The technology has democratized access to advanced trading techniques previously available only to large institutions.
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