Question

Which of the following statements are correct in regards to Algo-trading?

  1. Algo-trading is the use of predefined programs to execute trades.
  2. A set of instructions or an algorithm is fed into a computer program and it automatically executes the trade when the command is met.
  3. Algo-trading is new in India and the algorithm can be based on a number of output points.

A 1 & 2 Correct Answer Incorrect Answer
B 2 & 3 Correct Answer Incorrect Answer
C 3 & 4 Correct Answer Incorrect Answer
D All of these Correct Answer Incorrect Answer

Solution

Algo-trading is not new in India, but it is still in its nascent stage. The algorithm can be based on a number of input points like price, timing, quantity or other metrics.

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