Title :
Algorithmic Trading
Author :
Nuti, Giuseppe ; Mirghaemi, Mahnoosh ; Treleaven, Philip ; Yingsaeree, Chaiyakorn
Author_Institution :
UK Centre in Financial Comput., London, UK
Abstract :
In electronic financial markets, algorithmic trading refers to the use of computer programs to automate one or more stages of the trading process: pretrade analysis (data analysis), trading signal generation (buy and sell recommendations), and trade execution. Trade execution is further divided into agency/broker execution (when a system optimizes the execution of a trade on behalf of a client) and principal/proprietary trading (where an institution trades on its own account). Each stage of this trading process can be conducted by humans, by humans and algorithms, or fully by algorithms.
Keywords :
data analysis; electronic commerce; financial data processing; agency-broker execution; algorithmic trading process; computer program; data analysis; electronic financial market; pretrade analysis; principal-proprietary trading; trade execution; trading signal generation; Algorithm design and analysis; Investments; Protocols; Security; Stock markets; Algorithmic trading; Black-box trading; Electronic trading; Smart order routing;
