An arbitrage trading program (ATP) is a computer program that automatically executes trades on behalf of a trader in an attempt to profit from discrepancies in price quoted by different exchanges or brokers. ATPs are typically used by professional traders and institutional investors, as they require a high degree of sophistication and capital to be … Read more
A robo-advisor is a type of financial advisor that uses computer algorithms to provide investment recommendations. They are also sometimes referred to as “digital advisors.” Robo-advisors typically offer lower fees than traditional human advisors, and they can be a good option for investors who are comfortable making their own investment decisions. However, they may not … Read more
A neural network is a system of interconnected artificial neurons that can learn to recognize patterns of input data and make predictions based on those patterns. Neural networks are similar to the brain in that they are composed of a large number of interconnected processing units, or neurons, that receive and process information. Which type … Read more
A package deal is an investing strategy whereby an investor buys a group of assets all at once, in order to achieve a specific investment goal. This strategy can be used to diversify a portfolio, or to target a specific sector or region. Package deals can be purchased through mutual funds, exchange-traded funds, or other … Read more
How It Works and Example. High-frequency trading (HFT) is a type of automated trading that uses algorithms to place orders and execute trades at speeds that are humanly impossible. HFT firms make money by exploiting tiny discrepancies in prices across different markets. They do this by buying and selling securities at lightning-fast speeds, and by … Read more
An Application Programming Interface (API) is a set of rules and protocols that software programs can follow to communicate with each other. It acts as a intermediary between two applications or services, allowing them to exchange data and requests. An API Definition is a document that outlines the rules and protocols of an API, as … Read more
