Algo Trading

The Bengaluru-based financial technology startup Streak recently raised $1 million in pre-Series A funding round

Algorithmic or algo trading refers to high-frequency and automated execution of trades on the stock exchanges through pre-programmed software platforms installed on servers

Do not commit more than 15% of your equity portfolio as even a small glitch can prove costly

Algo trading has been used mostly by institutional and high networth investors

Market regulator Securities and Exchange Board of India (Sebi) is in the process of building a cyber-team for efficient monitoring and surveillance of algorithm trading, which makes up for significant portion of cash and derivatives market volumes."The market is fast evolving. Traders are creating new algorithms to maximize gains in the market. Sebi needs to stay on top of the game to prevent abuse of the marketplace. With this objective we are trying to build a large team of software experts," said a senior Sebi official in the surveillance department. Sources said Sebi is screening internal candidates who would suit the profile. The candidates need to have awareness and knowledge of new-age trading techniques such as robot advising, artificial intelligence and high frequency trades (HFT). Sebi might also be open to hire external candidates with proficiency in Python programming, a commonly-used software code for stock market algos, said another source.Under the current regulatory ...

Algo trading is in news because Sebi wants to impose curbs to ensure a more level playing field

To make a presentation to Sebi this week