Have you ever been glued to the screen, watching the market for hours, and thought, 'How can I benefit from the market without sitting for long hours?' The answer is algo trading. Algo trading is essentially computer programs used to automate trades and remove manual and emotional biases from investing.
In Algo trading, one of the major key factors is slippage. It is basically the gap between expected and actual execution prices. Let’s understand how a trader can remove slippage from its trades and execute the trades using Algo trading software carefully.
What Is Algo Trading?
Algo trading transforms how a trader or investor interacts with the markets with the help of computer programs. In algo, there is no need of manual execution. The algorithmic trading software can help to scan real-time data and spot opportunities. Algorithmic trading software eliminates emotional biases and helps to execute trades efficiently.
Algorithmic trading software handles everything from analysis to execution, making trading much easier for novice traders. Trading with algo Software means outsourcing the heavy lifting to the computer. Whether you're a novice or pro, understanding algo trading is foundational for modern finance.
Modern algo trading software comes in various forms, from sophisticated institutional platforms to user-friendly algorithmic trading apps designed for retail traders. These algo trading apps make it possible for individual investors to trade with algo without extensive programming knowledge. Meanwhile, many modern algorithm software for trading solutions offer visual programming interfaces that allow traders to create strategies without extensive coding experience.
One crucial concept that every trader must know is that Algo trading software may cause slippage due to market volatility, low liquidity or delay in order execution.To define slippage more precisely: it's the cost of market impact when your order moves the price against you. Order slippage can significantly affect profitability, especially in high-frequency trading strategies.
Let's understand in detail what slippage is and how viable Algo Trading is in the context of the Indian market.
Read More Here: https://bigul.co/blog/algo-trading/navigating-slippage-in-algo-trading-your-guide-to-smoother-execution-in-india
