What is algorithmic trading?

Algorithmic trading, commonly known as algo trading, simply means using a computer program to place trades for you. Instead of manually watching the market and clicking “buy” or “sell,” you set rules in advance — like “Buy stock X if it falls below ₹100 and sell if it rises above ₹110.” The software then executes those trades automatically, faster and more accurately than you could do yourself.

Think of it like setting an alarm on your phone: once the condition is met, the action happens without you needing to be there. This way, your trades are driven by logic and data, not emotions.