Algorithmic trading refers to the use of computer algorithms to automate the process of buying and selling financial securities in the markets. By leveraging mathematical models and high-frequency data analysis, traders can execute orders at speeds and efficiencies unattainable by human traders. This method allows for the execution of complex trading strategies that can capitalize on minute price discrepancies across various markets. Algorithmic trading has gained popularity due to its ability to minimize emotional decision-making and maximize profit potential, although it also raises concerns about market volatility and fairness.
