Institution Algorithmic Trading

[Smack]

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

 

[Trembling Hand]

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


BOT = Trading robot.

 

[Smack]

Thanks Hand.

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


SMack

 

[Trembling Hand]

Thanks Hand.

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


SMack

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

 

[Smack]

How do u know they are competing against each other?

Smack

 

[Smack]

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

Smack

 

[Trembling Hand]

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?

 

[Smack]

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