WILL RETAIL INVESTORS BENEFIT FROM ALGO TRADING?

On Dalal Street, trading algorithms are changing how trades are executed as Investors are embracing algo-trading to improve efficiency in financial markets while also enhancing transparency daily.

- Shivanand Pandit

A ground-breaking plan to increase algorithmic trading’s accessibility and security for individual investors has been presented by the SEBI which seeks to provide effective trading choices while shielding investors from possible dangers.

You may not notice it during your daily routine, but advanced algorithms play a crucial role in our lives, influencing everything from traffic lights and train schedules to the content you see on your Facebook feed. Consider your favourite e-library, your e-commerce mobile app, or the traffic updates you check before leaving home. All of these platforms operate seamlessly thanks to mathematical models known as algorithms, or 'algos.'

With each click and tap, they make countless micro-decisions to promptly provide the information you seek. The stock market is also transformed by the power of algos. On Dalal Street, trading algorithms are changing how trades are executed. Investors are embracing algo-trading to improve efficiency in financial markets while also enhancing transparency daily.

A ground-breaking plan to increase algorithmic trading's accessibility and security for individual investors has been presented by the Securities and Exchange Board of India (SEBI). With around 100 million individual investors trading on the Indian stock market, SEBI seeks to provide effective trading choices while shielding investors from possible dangers. In contrast to the present environment, where institutional investors control algo trading and leave individual investors vulnerable, this initiative marks a significant change. By creating a more safe and regulated environment, the thought targets to democratize trading and enable individual investors to confidently participate in algo trading.