Is Algo Trading Legal in India? Everything You Need to Know
Algorithmic trading, commonly referred to as algo trading, has become a transformative force in the continuously changing landscape of financial markets. It enables traders to execute trades automatically based on pre-defined instructions, removing the emotional biases that can affect manual trading. Nevertheless, a significant concern for many investors and traders in India is whether algo trading is permitted in the country. In this article, we will examine the legality of algo trading, explain its functioning, and provide all the essential information you need to begin. What is Algo Trading? Algo trading is the process of using algorithms or automated computer programs to execute trades. These programs follow predefined rules, such as price, timing, and quantity, to buy or sell securities. The goal of algo trading is to capitalize on market opportunities with speed and efficiency, something human traders cannot match. By using data-driven strategies, algo trading minimizes h...