CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.43% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing all your money. Read full risk warning.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

What Is Algorithmic Trading?

AI algorithms are presenting a new way to trade the markets

Filip Dimkovski - Writer for Fortrade
By Filip Dimkovski
Edited by Dorian Rhode

Published February 22, 2024.

A trader and an AI robot pointing at a stock price graph

Algorithmic trading is becoming more prevalent as investors explore different options for managing and optimizing their trading accounts. As the complexities of the market increase, traders are looking for new ways to take advantage of new potential possibilities while reducing some potential risks.

Note: Fortrade offers the ability to trade the price changes of instruments with CFDs and NOT to buy/sell ownership of the instrument itself.



What Is Algorithmic Trading?

Algorithmic trading is an automated approach that involves using advanced software and mathematical models to analyse financial markets and identify possibilities. These algorithms are coded to recognize certain patterns in the market data, such as price movement, volume, momentum, and other metrics. Then, they execute trades at specific times according to predetermined rules based on these patterns.

This trading strategy enables advanced investors and beginners to optimize their trading account performance while considering various factors, including market conditions, news events, risk management guidelines, etc.

» Learn more: More details about algorithmic trading