Program Trading

Computerized trading used primarily by institutional investors typically for large-volume trades. Orders from the trader's computer are entered directly into the market's computer system and executed automatically.

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. . 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

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