Program trading

• Trades based on signals from computer programs, usually entered directly from the trader's computer to the market's computer system and executed automatically.

• Computerized trading used primarily by institutional investors, typically for large volume trades, where orders from the trader's computer are entered directly into the market's computer system and executed automatically.

• Is the activity which uses computers and algorithms to initiate and close transactions. One popular form is index arbitrage and another is the use of programs to buy or sell entire baskets or portfolios via different access systems.

 Embedded terms in definition
Index arbitrage
Institutional investors
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