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