Algorithmic trading
Algorithmic trading uses computer programs to generate, submit or manage orders according to predefined rules. These rules may respond to prices, timing or other inputs; automation does not eliminate market risk, execution problems or programming errors.
In an illustrative scenario, a program submits an order when its moving-average rules are met, while a connection failure could prevent the order from reaching the server.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure