# Institution Algorithmic Trading



## Smack (8 September 2012)

Some clarification needed here and I hope you can help:

- Is the VWAP that is calculated (by Institutions) for the previous day's trade used as an approximate trading price for the same stock the following day with automated trading?

- What do the letters in 'BOT' trading stand for?


Smack


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## Trembling Hand (8 September 2012)

http://www.investopedia.com/terms/v/vwap.asp#axzz25rB5cQMg


BOT = Trading ro*bot*.


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## Smack (8 September 2012)

Thanks Hand.

Do you know if the Institutions use the VWAP for the previous days trade to base/control the following trading day??


SMack


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## Trembling Hand (8 September 2012)

Smack said:


> Thanks Hand.
> 
> Do you know if the Institutions use the VWAP for the previous days trade to base*/control the following trading day*??
> 
> ...




Come on mate. They are all competing against one another. How can "they" control it?


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## Smack (8 September 2012)

How do u know they are competing against each other?

Smack


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## Smack (8 September 2012)

And,  can you explain why Instos conduct automated trading on our markets?

Smack


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## Trembling Hand (8 September 2012)

Smack said:


> And,  can you explain why Instos conduct automated trading on our markets?
> 
> Smack




Errr well of course they would. Same reason GM and Ford use robots to make cars. Its efficient.

Why do you reckon they do?


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## Smack (8 September 2012)

And, can you explain why Instos conduct automated trading on our markets?


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