What is Algorithmic Trading?

Algorithmic trading refers to the use of computer programs to execute trades based on predefined rules. These rules can include price, volume, timing, technical indicators, market conditions, and order parameters. 

Once the specified conditions are met, the algorithm can execute orders without requiring manual order placement for each trade. Generally, algorithmic trading is used for:

• Automated strategy execution
• Order management
• Portfolio rebalancing, and 
• Reducing manual intervention

When it comes to algorithmic trading in India, algorithms can be used for trading securities on exchanges such as NSE, subject to applicable exchange and regulatory requirements. Generally, an algo trading API for NSE in India allows a trading application or strategy to:

• Connect with a broker’s trading system 

and 

• Send orders programmatically

However, algorithmic trading in India does not guarantee profits. Their results depend on the strategy, market conditions, execution, and risk controls.

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