The technique of utilizing computer programs or algorithms to conduct transactions automatically based on pre-defined criteria or instructions is known as algorithmic trading, sometimes referred to as automated trading or just algo trading.

Algorithmic trading analyzes market data, finds trading opportunities, and executes deals quickly and automatically without the need for human participation. It does this by employing mathematical models and algorithms.

expanded speed of execution, a decrease in human error, backtesting of techniques, expanded trading possibilities, and potential for better risk management are some benefits of algorithmic trading.

Institutional investors, hedge funds, proprietary trading businesses, and increasingly retail traders via online brokerage platforms can all access algorithmic trading.

In contrast to manual trading, which requires human decision-making and execution, algorithmic trading depends on the automatic execution of trades based on predetermined rules and algorithms.