What is algorithmic trading? Here’s everything you need to know…

Computers can do in a microsecond what would take humans hours to do manually. Beginning with the U.S. equities market more than 15 years ago, algorithmic trading has become common in major financial markets – and has penetrated the foreign-exchange market in a big way in recent years.

IBFX algo.jpg

FX algorithmic trading infographic courtesy of Interbank FX

  • Krishan Nagpal

    Algorithmic trading is all about controlling the execution of big order in order to limit the market impact. Read : link to comparebroker.com

  • Bullish

    Tansi,

    The algorithm will only be as good as the trader who wrote it. A safer way to start is to use the algorithm of the more experienced. 

    I found this, which is pretty informative:http://forex-algorithmic-syste

    check it out if you want.

    • Fitzhardinge

      You are confusing institutional algorithmic trading with personal trading robots (MT4 calls them Expert Advisers).

      And that link leads to an advertisement rather than an informational resource.  For shame!

  • Raghee Horner

    Thanks Fitzhardinge, I couldn’t have said it better myself!

  • tansi

    So, how do we take advantage of this type of trading to make money?

    • Fitzhardinge

      The fact of this techniques existence is important by itself — it’s kind of like knowing that your enemy has an atomic arsenal at his disposal.

      People interested in this topic might want to look at this Wikipedia article:

      link to secure.wikimedia.org

    • Michel Espinoza

      You can develop your own strategy and code it as an algorithm or get consulting http://www.fxcteam.com

  • Learn Day Trading

    It’s really interesting and knowledgeable. And I totally amazed to see the extreme information about algorithmic trading. The each of concept and features of this one are really looking knowledgeable and classy. Thanks for sharing.