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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