Algorithmic Trading Introduction



Algorithmic Trading Introduction

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Algorithmic Trading Life Cycle of Algo Components

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Algorithmic Trading Life Cycle of  Algo Components Algorithms are used extensively in various stages of the trading cycle. we can classify them into pre-trade analytics, execution stage, and post-trade analytics. The Pre-trade analytics involve thorough analysis of historical data and current price and volume data to help clients determine where to send orders and when; whether to use algorithms or trade an order manually we can call this as back testing the algorithm etc.,. The pre-trade analysis is designed to help buy-side traders understand and minimize market impact by choosing the level of aggressiveness and a time horizon for trading various stocks. Traders can select varying levels of aggressiveness and visualize them against the time horizon for completing the trade. Most compare the spread between bid and ask prices, reference that against the volatility of a given stock, and attempt to create a range of potential outcomes. A lot of the broker-sponsored algorithmic t...
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Sebi spotlight on BSE, NSE dark fibre the controversy at NSE: Did some brokers get special benefit? Sebi to find out

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The Union finance ministry has asked market regulator Securities and Exchange Board of India (Sebi) to probe the alleged "dark fibre links" between the BSE and the NSE, and has been informed, in turn, that a "preliminary fact finding" exercise is already underway. The BSE and the NSE have also been asked to provide inputs. When asked about the issue, the former declined to comment, and the latter said the allegations were baseless. Business Standard has reviewed the letters sent by the finance ministry to the Sebi over the past few months, along with the internal notes, which were obtained under the Right to Information (RTI). The documents showed that the ministry swung into action after receiving, in November, a whistle-blower account that talked about the "dark fibres" and other issues in high frequency trading (HFT). According to the ministry note sent to the Sebi, "The recent letter from the whistle-blower dated October 3, 2015, ta...
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