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Algorithmic Trading
November 2011 (vol. 44 no. 11)
pp. 61-69
Giuseppe Nuti, UK Centre in Financial Computing, London
Mahnoosh Mirghaemi, UK Centre in Financial Computing, London
Philip Treleaven, UK Centre in Financial Computing, London
Chaiyakorn Yingsaeree, UK Centre in Financial Computing, London
In electronic financial markets, algorithmic trading refers to the use of computer programs to automate one or more stages of the trading process: pretrade analysis (data analysis), trading signal generation (buy and sell recommendations), and trade execution. Trade execution is further divided into agency/broker execution (when a system optimizes the execution of a trade on behalf of a client) and principal/proprietary trading (where an institution trades on its own account). Each stage of this trading process can be conducted by humans, by humans and algorithms, or fully by algorithms.

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Index Terms:
Algorithmic trading, Black-box trading, Electronic trading, Smart order routing
Citation:
Giuseppe Nuti, Mahnoosh Mirghaemi, Philip Treleaven, Chaiyakorn Yingsaeree, "Algorithmic Trading," Computer, vol. 44, no. 11, pp. 61-69, Nov. 2011, doi:10.1109/MC.2011.31
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