American Options are basically derivatives which have the option of being redeemed anytime during the life of the option. The main use of being able to redeem the option before it reaches maturity or on the date of maturity is that it gives an additional advantage of tradability. It is in contrast to European options ..
Algorithm trading is a trading technique used in financial markets which involves transaction decision making via making use of various mathematical tools and algorithms. The role of a human trader is nullified in this as it presents all profit-making opportunities in the market to the system much before they are spotted by the human trader ..