Algorithmic trading automates the systematic trading process, where orders are executed at the best price possible based on a variety of factors, such as pricing, timing, and volume. Brokerage firms may offer an Application Programming Interface (API) as part of their service offering for customers who wish to deploy their own trading algorithms. An algorithmic trading system must be highly robust to handle any point of failure during the order execution. Network configuration, hardware, memory management, speed, and user experience are a number of factors to be considered when designing a system for executing orders. Designing larger systems inevitably adds more complexity to the framework.
As soon as a position in a market is opened, it is subjected to various types of risk, such as market risk, interest rate risk, and liquidity risk...
