What is Program Trading? Types, Definition, Advantages, and Disadvantages
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In the fast-paced world of financial markets, technology has revolutionized the way trading is conducted. One of the most significant advancements in this domain is program trading. This innovative approach to trading has gained immense popularity among institutional investors, hedge funds, and even retail traders. In this blog, we will explore what program trading is, its types, advantages, and disadvantages, with a special focus on its relevance in the Indian market, particularly for firms like Lares Algotech. What is Program Trading? Program trading refers to the use of computer algorithms to execute a large number of trades simultaneously. These algorithms are designed to follow predefined rules and strategies, enabling traders to capitalize on market opportunities with speed and precision. Program trading is often used in high-frequency trading (HFT), arbitrage, and portfolio rebalancing. In simpler terms, program trading automates the trading process...