What is algorithmic trading (at)?

Algorithmic Trading (AT) is one of the prominent moves in this direction and is widely adopted across world markets. The existing literature on AT and its impact on markets is still in the nascent stage primarily due to the inability of most of the markets to directly identify AT.

Which markets have the most algorithmic trading?

American markets and European markets generally have a higher proportion of algorithmic trades than other markets, and estimates for 2008 range as high as an 80% proportion in some markets. Foreign exchange markets also have active algorithmic trading, measured at about 80% of orders in 2016 (up from about 25% of orders in 2006).

Does algorithmic trading affect financial markets?

Exploring the impact of algorithmic trading on financial markets, the review examines how AI-driven strategies contribute to market efficiency, liquidity provision, and price discovery. It dissects the implications for traditional market structures, regulatory considerations, and the potential risks associated with algorithmic dominance.