BSE launches algorithm trading test
Bombay Stock Exchange (BSE) Ltd has launched a new service for algorithm trading test facility for investors on its derivatives and equity platform.
The new service has been launched in partnership with Mumbai based Symphony Fintech Solutions Pvt Ltd and is free-of-cost for market participant.
This service will
- Enable all market participants to test their trading algorithms in different trading segments including equity, equity derivatives and currency derivatives segments.
- Help members to test their trading strategies based on the live market data feed during market hours and also from historical market data.
What is Algorithm Trading?
- Algorithmic trading in financial markets refers to transaction orders generated by using advanced mathematical models that involve automated execution of trade.
- It uses mathematical models and software codes to make transaction decisions on exchanges and execute them at high speed.
- This technology-driven trading enables traders to take advantage of any profit making opportunities arising in the market much before a human trader can even spot them.