Such algorithmic trading has surely increased in the previous years. Such would help to improve the market quality and is it best to encourage this? Well, there are so many of those who say that algo trading does help in improving the liquidity and would also boost the informativeness of the prices and quotes.
A big reason why the algorithmic trading has become really popular is the due to the benefits that such holds over trading in a manual method. The advantages of algo trading are actually related to speed, accuracy and also minimized costs. Since the algorithms were written in advance and they were executed manually, then the primary advantage is speed. The speed in which such trades are made is measured in only fractions of a second that is a lot faster than what humans are able to perceive.
The algorithm actually has the benefit of scanning and executing on various indicators at a speed which no human has done. Since trades are analyzed and done in a faster way, then you can have more opportunities and they are being offered at better costs.
What you can also get from algo …