Program trades are usually executed if index prices sink or rise to a certain level. This tends to create very volatile situations. As a result, there are restrictions on times when program trading can be used.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Program trading — is casually defined as the use of computers in stock markets to engage in arbitrage and portfolio insurance strategies. However, the New York Stock Exchange (NYSE) defines the term as a wide range of portfolio trading strategies involving the… … Wikipedia
program trading — Trading on financial markets using computer programs. The programs used trigger trading automatically once certain limits are reached. It was said to account for some 10% of the daily turnover on the New York Stock Exchange in the late 1980s and… … Big dictionary of business and management
program trading — n. the use of sophisticated computer programs to execute large orders to buy and sell stocks and futures * * * … Universalium
program trading — n. the use of sophisticated computer programs to execute large orders to buy and sell stocks and futures … English World dictionary
program trading — trade based on signals from computer programs, usually entered directly from the trader s computer in to the market s computer system and executed automatically. Applies to derivative products. A process of electronic execution of trading of a… … Financial and business terms
Program trading — Trades based on signals from computer programs, usually entered directly from the trader s computer to the market s computer system and executed automatically. The New York Times Financial Glossary * * * program trading program trading ➔ trading… … Financial and business terms
program trading — I program trading o programmi di trading sono dei sistemi automatizzati di compravendita, utilizzati dal trader per effettuare automaticamente operazioni di arbitraggio fra posizioni contanti e strumenti derivati, speciamente nel mercato… … Glossario di economia e finanza
program trading — noun a trading technique involving large blocks of stock with trades triggered by computer programs • Hypernyms: ↑trading … Useful english dictionary
program trading — noun Date: 1984 computerized trading of large blocks of stocks in one market and stock index futures in another so as to take advantage of price differentials between the markets … New Collegiate Dictionary
program trading — Fin the trading of securities electronically, by sending messages from the investor’s computer to a market … The ultimate business dictionary