The use of algorithmic trading is most commonly used by large institutional investors due to the large amount of shares they purchase everyday. Complex algorithms allow these investors to obtain the best possible price without significantly affecting the stock's price and increasing purchasing costs.
Investment dictionary. Academic. 2012.
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Algorithmic trading — In electronic financial markets, algorithmic trading or automated trading, also known as algo trading, black box trading, or robo trading, is the use of computer programs for entering trading orders with the computer algorithm deciding on certain … Wikipedia
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