The algorithmic trading: The system that can ease trading

Algorithmic TradingThe share market is a known platform which is not only the barometer for economy but also an option for the traders to earn more money. Here one can find various options where he can invest, trade and earn money regularly. It is the right avenue whether one wants to make profit daily or go for building a sound portfolio. Those who know the market and movement of the same rightly can very well earn in this market. Looking at the traders who earn much in this market many novices also try to jump without understanding the algorithmic trading. The market moves as per the rule of demand and supply as the quantity of the shares is fixed.

The movement in market:

It is interesting to know how the market moves. The share quantity is always listed on the exchange and it is noted in the computers also. Hence when due to any news if the buyers are increased and sellers remain constant the rates of the concerned shares get increased. If the buyers are still increased and sellers are in limited numbers those who are ready to pay higher prices can get the shares and those who have placed order with low prices get rejection. Opposite to the same happens when due to any reason the sellers are in higher number who are willing to sell the shares while buyers are limited, the share prices goes down.  As soon as the limit price is hit the shares are sold and the profit is booked. Hence even if the prices once go up, the shares get sold and then again comes down the trader can have his shares sold and profit booked. Hence those who want to avoid damage or prefer to get a limited profit, these options can be of much help. There are also upper and lower limits for share prices movement of any company which is called circuit. In normal situations when there are a few sellers and a few buyers one can see a little fluctuation in the price of the concerned shares. Hence the whole market moves as per the availability and demand of concerned shares.

The limits:

For the traders who are with a mindset of fixed prices, it is necessary to know the limits. They can set stop loss and limit as per their prices in the system. The stop loss is used when the share prices fall and to protect one from the damage of low share prices one can set the stop loss. As soon as the prices of the shares hit to the concerned limit, the shares are sold in the market and hence one can save his back from further damage. In the case of limit one can set the price for concerned shares. As soon as the limit price is hit the shares are sold and the profit is booked. Hence even if the prices once go up, the shares get sold and then again comes down the trader can have his shares sold and profit booked. Hence those who want to avoid damage or prefer to get a limited profit, these options can be of much help. As soon as the limit price is hit the shares are sold and the profit is booked. Hence even if the prices once go up, the shares get sold and then again comes down the trader can have his shares sold and profit booked. Hence those who want to avoid damage or prefer to get a limited profit, these options can be of much help. For a prudent trader it is necessary to keep the limits set as it can make one save from a vast damage and on the other side a little profit booking can also easily happen if the same is set for.

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algorithmic trading

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