Wednesday, March 05, 2025 | 09:50 AM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

Explaining the algo trading framework

Algo trading is a software programme designed to execute automatic trades on fulfillment of certain criteria

algo trading
Premium

Samie Modak Mumbai
Technological advancement has made available newer tools for transacting in the financial markets. Algorithm trading (algo) is one. It uses software-programmed trading strategies for benefiting from stock price movements. Nearly half of trades in the domestic market come from algos.

However, this new trading technique is still out of bounds for retail (small) investors. Entities in the sector say the regulator, Securities and Exchange Board of India (Sebi), should introduce a framework for retail-focused brokers and their clients on algo trading, to increase accessibility. 

What is it?

Algo trading is a software programme designed to execute automatic trades on fulfillment

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in