Trader's Glossary

Algorithmic Trading

Also known as algo-trading, or black box trading. Algorithmic trading is the use of mathematical models designed to automatically react to changing market conditions in real time, opening and closing positions according to preset parameters without human intervention. Algorithmic trading has been widely adopted by large financial institutions such as investment banks and hedge funds, but has recently been made available to retail traders through services such as FxPro Library and FxPro Quant, a strategy building tool that empowers clients to develop their own automated trading strategies without needing any prior coding knowledge.