Algo: No longer a four-letter word

Algorithmic trading in FX is rapidly evolving. Until recently, if you said someone did it, you were effectively using an extremely rude four-letter word. Now, it seems that the term has reverted to the original meaning it had in equities: a sub-set of programme trading designed to gain better execution.

Algorithmic trading in FX is rapidly evolving. Until recently, if you said someone did it, you were effectively using an extremely rude four-letter word. Now, it seems that the term has reverted to the original meaning it had in equities: a sub-set of programme trading designed to gain better execution.

Algos have had a huge impact on equities and it has been widely predicted that their use will grow rapidly in FX. However, because the two markets are very different in many ways, I have at times been extremely sceptical.

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