Algorithmic trading utilizes mathematical models and computer algorithms to automatically make trades based on pre-programmed instructions. It is popular in developed nations and used by large institutional investors to help brokers develop trading strategies and obtain optimal prices for large transactions while minimizing market impact. Globally, algorithmic trading accounts for around 3% of total market turnover.

2.  Technology-driven pre programmed
mathematical model-based stock trading
 Popular in developed nations
 At NSE.IT, the 100 % subsidiary of NSE
 Help broker in formulating a trading
strategy and its implementation
 Convenience of the stock brokers
 Globally Algo trading is pegged at 3 per
cent of the total turnover

3. What Does Algorithmic Trading
Mean?
 A trading system utilizes very advanced
mathematical models for making transaction
decisions in the financial markets.
 The strict rules built into the model attempt
to determine the optimal time for an order to
be placed that will cause the least amount of
impact on a stock's price.

4. Who uses Algo Trading?
 The use of algorithmic trading is most
commonly used by large institutional
investors due to the large amount of shares
they purchase every day.
 Complex algorithms allow these investors to
obtain the best possible price without
significantly affecting the stock's price and
increasing purchasing costs.