Algo-trading: Why it is a boon for traders, strategies to follow and how stop-loss modification works - Explained
Explaining how Algo-trading can help in developing delta-neutral strategies, Hemant Sood adds, "If your portfolio as an investor is delta neutral, the chances are that market movement will not affect your portfolio. Delta means a change in the price of a derivative. It is concerning that price that is underlying an asset. So, in short, delta neutral uses multiple positions to balance both negative and positive deltas."
Algo Trading is garnering immense interest from stock market trader as it is a form of automated trading that uses computer programs to analyse market data based on pre-defined parameters. Source: Reuters