How does algorithmic trading work?

Algo trading works by converting your trading strategy into a set of predefined rules that a computer can follow. Once you set these rules — like buying when a stock price crosses ₹500 or selling if it falls below ₹480 — the system keeps scanning the market and executes the trades instantly when conditions are met.  

Since everything is automated, trades happen in milliseconds with greater accuracy, removing the chances of manual errors or missed opportunities. It also takes emotions out of the picture, ensuring your decisions are purely logical and consistent. In short, it’s like putting your trades on autopilot — fast, precise, and reliable.