What does program trading mean?
Definitions for program trading
pro·gram trad·ing
This dictionary definitions page includes all the possible meanings, example usage and translations of the word program trading.
Princeton's WordNet
program tradingnoun
a trading technique involving large blocks of stock with trades triggered by computer programs
Wikipedia
Program trading
Program trading is a type of trading in securities, usually consisting of baskets of fifteen stocks or more that are executed by a computer program simultaneously based on predetermined conditions. Program trading is often used by hedge funds and other institutional investors pursuing index arbitrage or other arbitrage strategies. There are essentially two reasons to use program trading, either because of the desire to trade many stocks simultaneously (for example, when a mutual fund receives an influx of money it will use that money to increase its holdings in the multiple stocks which the fund is based on), or alternatively to arbitrage temporary price discrepancies between related financial instruments, such as between an index and its constituent parts.According to the New York Stock Exchange, in 2006 program trading accounts for about 30% and as high as 46.4% of the trading volume on that exchange every day. Barrons breaks down its weekly figures for program trading between index arbitrage and other types of program trading. As of July 2012, program trading made up about 25% of the volume on the NYSE; index arbitrage made up less than 1%.
ChatGPT
program trading
Program trading refers to a type of trading in securities, typically involving large amounts of stock, that uses computer programs to automate the process of buying and selling. These computer programs execute trades when certain predefined conditions, such as price levels or market trends, are met. This type of trading can be used to take advantage of market inefficiencies or simply to execute large orders without excessively impacting the market price.
Wikidata
Program trading
Program trading is a type of trading in securities, usually consisting of baskets of fifteen stocks or more that are executed by a computer program simultaneously based on predetermined conditions. There are essentially two reasons to use program trading, either because of the desire to trade a large number of stocks at the same time, or alternatively to arbitrage temporary price discrepancies between related financial instruments, such as between an index and its constituent parts. According to the New York Stock Exchange, in 2006 program trading accounts for about 30% and as high as 46.4% of the trading volume on that exchange every day. Barrons breaks down its weekly figures for program trading between index arbitrage and other types of program trading. As of July 2012, program trading made up about 30% of the volume on the NYSE; index arbitrage made up less than 1%.
Matched Categories
Numerology
Chaldean Numerology
The numerical value of program trading in Chaldean Numerology is: 2
Pythagorean Numerology
The numerical value of program trading in Pythagorean Numerology is: 8
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"program trading." Definitions.net. STANDS4 LLC, 2024. Web. 30 Apr. 2024. <https://www.definitions.net/definition/program+trading>.
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