Algorithmic trading has started to make its presence felt in the FX market and is expected to become adopted by many participants

However there is still much confusion about how algorithmic trading is defined and differs from traditional automated trading

Broadly speaking Algorithmic trading can be split into four areas:

Auto-hedging – where hedging orders are automatically generated according to a formula for dynamically managing risk levels

Statistical trading – where orders are generated according to differentials in relative values or according to algorithms devised around macro portfolio models

Liquidity Access – where a trading solution has been designed to improve access to multiple trading venues

Algorithmic execution – where trading styles are automated to control and finesse trade execution

Over the last two years e-Forex has published many articles on Algorithmic trading These can be accessed from the sections below

Providing you have registered for a free trial of the magazine you can read these articles in full when you have logged in



If you haven't registered for a free trial you can do so here