It involves using computer software and advanced mathematical models, based on specific parameters such as price, volumes, etc, to create fast-paced trading strategies. This form of trading has been used mostly by institutional and high networth investors in the past.
Should retail investors opt for algo trading?
The question assumes importance because the Securities and Exchange Board of India (Sebi) is planning to introduce rules for participation in algo trading by retail investors. And brokers, such as Zerodha, SMC Global Securities, 5Paisa, Master Trust, etc, already offer algo trading to retail investors. Some experts believe that retail investors should get equal opportunities