Back in 2006, 1/3 of al stocks traded in the USA and EU were traded electronically by specially designed algorithms without any human input. Today, it is estimated that around 70 % of stocks traded in the US and EU markets are bought/sold by algorithmic programs, with some markets pushing 80 %.
In order to understand this, it is important for you to know what algorithmic trading is. Algo trading is the use of electronic platforms for entering orders with an algorithm which executes pre-programmed trading instructions.
These instructions include many commands and variables, such as timing, price, or quantity of the order. And what’s most amazing is that in many cases the order can initiate without any human intervention.
All those algorithms are used by banks, pension funds, among many other important places.We see mathematics in every day life use, but when it comes to many we can see it magically becomes a lot more interesting!