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3 rule based trading terms to know
01:25 Mins Read
Watch this video to learn about some important terms related to rule-based trading.
Interested in learning about rule-based trading? Here are 3 basic terms to get you started. First up, automated trading. Here, specially designed computer programs automate the entire trading process. Trade decisions, order placement, and order execution don't require any human intervention. The next term on the list is High Frequency Trading. Also known as HFT, it involves the usage of algorithms and rules to execute high volume trades. In HFT, traders only hold securities for seconds or minutes before selling them off. This allows them to execute hundreds and thousands of trades in a day. And finally, Application Programming Interface. Also known as API, it is an interface that allows two or more computer programs to connect and transfer data between them. So, software programs using different programming languages can communicate with one another. Head to the next chapter to learn about the benefits of rule based trading.