Is algorithmic trading the future for credit?

Algorithmic trading has taken the equity market by storm and is rapidly gaining a following in foreign exchange. Laurence Neville asks whether the conditions are right for it to flourish in credit

Algorithmic trading means a variety of things to different people, but in its broadest sense, users rely on algorithms - complex mathematical formulas - to decide when financial instruments should be bought or sold according to a pre-defined strategy.

Often interpreted simply as automated trading, a computer model rather than an individual, decides when to buy or sell a stock, security or asset. That decision might be triggered when a stock, security or asset hits a certain price - or when the

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options