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Quantitative Finance · Glosario

¿Qué es Algorithmic trading, high-frequency trading?

También llamado: algorithmic trading · high-frequency trading

Definition 24.3 Microstructure and Execution · Capítulo 24 — Market Quality and Regulation

Algorithmic trading is trading in which a computer algorithm determines the parameters of orders (whether to send them, their timing, price or quantity, how to manage them afterwards) with little or no human intervention. High-frequency trading is algorithmic trading that relies on infrastructure minimising latency (co-location, proximity hosting or high-speed direct access), decides without human intervention for individual orders, and sends many orders, quotes or cancellations within the day.

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