A STUDY ON THE IMPACT OF ALGORITHMIC TRADING ON PRICE DISCOVERY IN INDIAN EQUITY MARKET

K.Rajendra Prasad , y.Subbarayudu

Algo trading, stock exchange, equity market, price discovery

Algorithmic trading “is computerized rule based system answerable for executing orders to buy or sell a given asset”. It reduces and sometimes eliminates the manual interventions of a trader and comes up with efficient decisions regarding time, price, and quantity of orders. The decision-making is predicated on the knowledge gathered by dynamically monitoring the market conditions across the securities and trading venues. the concept behind this can be to scale back the market impact by optimally breaking the big orders and closely tracking benchmarks over the execution intervals. As an investor or trader, everyone aims at maximizing the profits and minimizing the risks by carefully choosing different investment avenues. this can be what the Algorithmic Trading (Execution) intends to try to to. Algorithmic trading utilizes very advanced and complicated mathematical models for creating decisions on behalf of an investor within the financial markets. There are strict rules that determine the optimal time for an order to be placed, to be modified and to be cancelled in such how that it'll cause the smallest amount amount of impact on the stock's price and also will ensure availability of liquidity for the investors.

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"A STUDY ON THE IMPACT OF ALGORITHMIC TRADING ON PRICE DISCOVERY IN INDIAN EQUITY MARKET", IJNRD - INTERNATIONAL JOURNAL OF NOVEL RESEARCH AND DEVELOPMENT (www.IJNRD.org), ISSN:2456-4184, Vol.8, Issue 3, page no.e126-e132, March-2023, Available :https://ijnrd.org/papers/IJNRD2303417.pdf

Volume 8 Issue 3, March-2023

Pages : e126-e132

Paper Reg. ID: IJNRD_189758

Published Paper Id: IJNRD2303417

Downloads: 000118844

Research Area: Management

Country: Kurnool, Andhra Pradesh, India

Published Paper PDF: https://ijnrd.org/papers/IJNRD2303417

Published Paper URL: https://ijnrd.org/viewpaperforall?paper=IJNRD2303417

ISSN: 2456-4184 | IMPACT FACTOR: 8.76 Calculated By Google Scholar | ESTD YEAR: 2016

An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 8.76 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator

Publisher: IJNRD (IJ Publication) Janvi Wave

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