Program Trading

What Does Program Trading Mean?
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.

Investopedia explains Program Trading
Program trades are usually executed if index prices sink or rise to a certain level. This tends to create very volatile situations. As a result, there are restrictions on times when program trading can be used.

Related Terms

Algorithm
Basket Trade
Fuzzy Logic
Index
Institutional Investors
Neural Network
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Related Links

The Power Of Program Trades - Learn how programs make up a significant portion of the volume traded each day.
From Beads To Binary: The History Of Computing - Investing today couldn't happen without the inventions of yesterday. Learn more here.
Electronic Trading Tutorial - Learn about the systems that run the market. Topics include market makers, specialists, SuperDOT, ECNs, SOES, Level I, II, and III Access, and more.
Uncovering The Securities Firm - Learn about a securities firm's various departments and the professionals who make the firm tick.
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