With reference to the algorithmic trading, Consider the following statements:

Algorithmic trading uses pre-programmed computer strategies to execute buy and sell trades based on set parameters or market conditions.

The algorithm automatically executes the order with no human involvement from either the broker or the investor.

Which of the Statements given above is/are correct?

Question

Algorithmic trading uses pre-programmed computer strategies to execute buy and sell trades based on set parameters or market conditions. Correct: Algorithmic trading, also known as automated or programmed trading, uses pre-programmed computer strategies to buy and sell stocks based on specific parameters or market conditions.
The algorithm automatically executes the order with no human involvement from either the broker or the investor. Correct: The algorithm automatically executes the order with no human involvement from either the broker or the investor. The algorithmic trading system automatically monitors the live stock prices and initiates an order when the given criteria are met.

GKToday Admin · Accepted Answer

Both 1 and 2

Algorithmic trading uses pre-programmed computer strategies to execute buy and sell trades based on set parameters or market conditions. Correct: Algorithmic trading, also known as automated or programmed trading, uses pre-programmed computer strategies to buy and sell stocks based on specific parameters or market conditions.
The algorithm automatically executes the order with no human involvement from either the broker or the investor. Correct: The algorithm automatically executes the order with no human involvement from either the broker or the investor. The algorithmic trading system automatically monitors the live stock prices and initiates an order when the given criteria are met.

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