Algorithmic and Quantitative Trading
Description
Algorithmic and Quantitative Trading involves using computer algorithms and mathematical models to execute trades in financial markets. These methods are widely used by institutional investors, hedge funds, and proprietary trading firms for their speed, precision, and ability to analyze large amounts of data.
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Algorithmic Trading (Algo Trading):
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Automated trading using pre-programmed instructions to execute orders based on various criteria like price, volume, timing, or other complex mathematical models.
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Quantitative Trading (Quant Trading):
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Using mathematical models, statistical analysis, and historical data to identify trading opportunities.
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High-Frequency Trading (HFT):
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A subset of algorithmic trading that involves executing thousands of orders in milliseconds to capitalize on small price movements.
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