algorithmic trading market is estimated to be valued over USD xx million by
2025. It also accounts for variables such as price, time, and volume in order
to send small slices of the order out to the market over time. From the past
several years, algorithm trading has been gaining traction in both institution
and retail traders. Popular platforms for algorithmic trading include
Quantopian, IQBroker, NinjaTrader and MetaTrader.
Algorithmic trading is not an attempt to create trading profit, but it is simply a way to minimize the market impact, cost, and risk in implementation of an order. It is broadly used by hedge funds, mutual funds, pension funds and investment banks, as these institutional traders need to execute large orders in market at a same instance. The algorithmic trading market has experienced substantial growth rate owing to growing automation process in trading by large number of organizations. Integrated financial markets assist the local retailers into buying foreign assets with reduced risks.
One of the major reasons that makes algorithmic trading so popular is owing to the advantages that it holds over trading manually. The advantages of algorithmic trading are associated to reduced costs, accuracy and speed. As algorithms are written before and are implemented automatically, the chief advantage is speed.
Trading with algorithms has the advantage of scanning and capital punishment on multiple indicators at a speed that no human might do.
can be executed and analyzed faster, more opportunities are available at better
prices thus, is expected to propel growth of this market.
North America is the important regions in algorithm trading market which is expected to gain highest revenue globally, owing to technological advancement and substantial application of algorithm trading in diverse end-user segment such as equities market, commodities market, forex market, funds market and others. In addition, Asia-Pacific rapidly growing economy with noteworthy growth in construction sector is expected to propel the growth for algorithm trading market. The Asia-Pacific region is expected to lead the market throughout the forecast period.
The key players in algorithmic trading market include InfoReach, Inc., Tethys Technology, Inc., FlexTrade Systems, Inc., Tower Research Capital LLC, Lime Brokerage LLC, Hudson River Trading LLC, Citadel LLC, AlgoTrader GmbH, Virtu Financial, TABB Group, LLC, Trading Technologies International, Inc., and Others.
End-user Overview, 2015 – 2025 (Revenue)
• Equities Market
• Commodities Market
• FOREX Market
• Funds Market
o Mutual Funds Market
o Pension Funds Market
o Hedge Funds Market
Function Overview, 2015 – 2025 (Revenue)
• Programming Market
• Debugging Market
• Data Extraction Market
• Back-Testing & Optimization Market
• Risk Management Market3