Algorithmic Trading in India Explained Strategies, Rules, and Reality
Algorithmic trading is perhaps the single hottest topic in finance and electronic security markets. To Indian traders, it offers speed, discipline and data-driven decision-making — but also rules to follow, risks to manage and a few big misconceptions. Read on to find out how algorithmic trading really works in India, what traders are doing with it, the regulations around it and much more of the actual situation. At the end of all this, you’ll have a grounded understanding if automation is appropriate for your trading objectives. 1. Get to grips with what algorithmic trading truly is Algorithmic Trading - Algorithmic trading is where you define a strategy to trade on, and the computer then automatically places trades based on data it receives from the market. These rules can be based on price changes, volume, call expiry time or technical indicators. In Indian context, such systems are extensively used in equities and equity derivatives on exchanges like NSE and BSE. ...