Digital assets likely to further increase the need for bots and algorithmic trading

According to Select USA: “About 60-75 percent of overall trading volume in the U.S. equity market, European financial markets, and major Asian capital markets is generated through algorithmic trading.” What exactly is meant by the term ‘automated trading system’? Automated trading systems, also known as algorithmic trading, automated trading or system trading enables traders to set up a particular criteria as to when to buy or sell and, once programmed, the trade is carried out automatically by a computer.

Simplistic view of how an algorithmic trade happens

Source: ig.com

According to Verified Market Research: “Algorithmic Trading Market size was valued at USD 13.32 Billion in 2021 and is projected to reach USD 33.23 Billion by 2030, growing at a CAGR of 10.11% from 2023 to 2030”.The Corporate Finance Institute defines algorithmic trading as being: “Algorithmic trading strategies [which] involve making trading decisions based on pre-set rules that are programmed into a computer. A trader…