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Oct 17, 2016  

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also closed. Both these regions are major players in the foreign exchange market. As the strife began for sterling, there were fewer buyers active in the market. Extreme movements are more likely at times of lower trading volumes as there are fewer trades to calm any market panic. What exactly is algorithmic trading? Also known as automated trading, this is where specialised, bespoke computer programs are designed to help traders work faster. They will receive information from multiple sources such as data on previous crises and trades, as well as information from news sites and even social media. The programs then trade immediately in response. The growth of automated trading has been rapid. The Bank for International Settlements says that between the 2007 and 2013, algorithmic trading at Electronic Broking Services (EBS), an FX trading platform used by market-making banks, grew from 28% to 68% of volumes.

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