Flashcard Set Preview
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| 1 |
Algorithmic trading is the use of
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automated, quantitative systems that
utilize trading rules, benchmarks, and constraints.
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| 2 |
The motivation for
algorithmic trading
is to
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execute orders with minimal risk and costs.
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| 3 |
The use of
algorithmic trading often involves
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breaking a large trade into smaller
pieces to accommodate normal market flow and minimize...
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| 4 |
Algorithmic trading consists of:
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logical participation (simple logical
and implementation shortfall), opportunistic participation,...
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| 5 |
Simple logical participation strategies seek to
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trade with market flow
so as to not become overly noticeable to the market and to minimize...
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Implementation shortfall strategies
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minimize trading costs as defined
by the implementation shortfall measure or total execution...
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Opportunistic participation strategies
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trade passively over time, but increase trading when liquidity is present.
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| 8 |
Specialized strategies
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include passive strategies and other miscellaneous strategies.
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