week 2 - new developments in trading

Question 1

explain algorithmic trading?

Answer 1

• Use of computer programs to make rapid trading decisions

Question 2

explain high-frequency trading

Answer 2

• A subset of algorithmic trading
  
  • Computer programs make very rapid trading decisions for
    very small profits

Question 3

explain dark liquidity

Answer 3

• Buy and sell orders that are not visible to the rest of the
  market, although trades are typically published immediately
  after they take place
  
  • A dark pool system that enables trading away from lit
    exchange markets
  • A crossing system is a dark pool which is operated by a
    market participant (a participant of a licensed market, with
    permission to directly access the market to trade on behalf
    of their clients and/or themselves).