What are Algorithms?*

Algorithmic trading or automated trading, also known as algo trading, black-box trading or robot trading, is the use of computer programs for entering trading orders with the computer algorithm deciding on aspects of the order such as the timing, price, or quantity of the order, or in many cases initiating the order without human intervention. In the case of the programs we are offering, scalping is the preferred mode via a hard coded, execution process know as F.I.X. ( Financial Information eXchange) protocol.

 

The Financial Information eXhange (FIX) protocol is an electronic communications protocol initiated in 1992 for international real-time exchange of information related to the securities transactions and markets. With trillions of dollars traded annually, financial service entities are investing heavily in optimizing electronic trading and employing Direct Market Access (DMA) to increase their speed to financial markets. Managing the delivery of trading applications and keeping latency low increasingly requires an understanding of the FIX protocol plus intensive source coding into systems in order to maintain exceptional transactional speed.

Scalping (trading) is a method of arbitrage of small price gaps created by the bid-ask spread. Scalpers attempt to act like traditional market makers or specialists. To make the spread means to buy at the Bid price and sell at the Ask price, to gain the bid/ask difference. This procedure allows for profit even when the bid and ask do not move at all, as long as there are traders who are willing to take market prices. It normally involves establishing and liquidating a position quickly, usually within minutes or even seconds. The role of a scalper is like the role of market makers or specialists who are to maintain the liquidity and order flow of a product of a market. This requires a sophisticated trading system to monitor trading activity; hence, the F.I.X. scalper model.

 

Read more here: AlgoArticle.pdf Algorithms for Clients

 

Read more here: BIS report_Algo FX.pdf B.I.S. : High Frequency Traders (Algorithms) Help the FOREX Market

 

 

 



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Risk Disclosure*

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