program trading


program trading
trade based on signals from computer programs, usually entered directly from the trader's computer in to the market's computer system and executed automatically. Applies to derivative products. A process of electronic execution of trading of a basket of stocks simultaneously, for index arbitrage, portfolio restructuring, or outright buy/sell interests. Bloomberg Financial Dictionary
See: super dot . 0

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program trading program trading trading

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   A computer-based trading technique based on the flow of trading and price levels, rather than fundamental data. Program trading aims to exploit arbitrage possibilities between stock index futures or options and underlying equities.
   ► See also Arbitrage.

Financial and business terms. 2012.

Look at other dictionaries:

  • Program trading — is casually defined as the use of computers in stock markets to engage in arbitrage and portfolio insurance strategies. However, the New York Stock Exchange (NYSE) defines the term as a wide range of portfolio trading strategies involving the… …   Wikipedia

  • program trading — Trading on financial markets using computer programs. The programs used trigger trading automatically once certain limits are reached. It was said to account for some 10% of the daily turnover on the New York Stock Exchange in the late 1980s and… …   Big dictionary of business and management

  • program trading — n. the use of sophisticated computer programs to execute large orders to buy and sell stocks and futures * * * …   Universalium

  • program trading — n. the use of sophisticated computer programs to execute large orders to buy and sell stocks and futures …   English World dictionary

  • Program trading — Trades based on signals from computer programs, usually entered directly from the trader s computer to the market s computer system and executed automatically. The New York Times Financial Glossary * * * program trading program trading ➔ trading… …   Financial and business terms

  • Program Trading — Computerized trading used primarily by institutional investors typically for large volume trades. Orders from the trader s computer are entered directly into the market s computer system and executed automatically. Program trades are usually… …   Investment dictionary

  • program trading —   I program trading o programmi di trading sono dei sistemi automatizzati di compravendita, utilizzati dal trader per effettuare automaticamente operazioni di arbitraggio fra posizioni contanti e strumenti derivati, speciamente nel mercato… …   Glossario di economia e finanza

  • program trading — noun a trading technique involving large blocks of stock with trades triggered by computer programs • Hypernyms: ↑trading …   Useful english dictionary

  • program trading — noun Date: 1984 computerized trading of large blocks of stocks in one market and stock index futures in another so as to take advantage of price differentials between the markets …   New Collegiate Dictionary

  • program trading — Fin the trading of securities electronically, by sending messages from the investor’s computer to a market …   The ultimate business dictionary


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