Algo Trading Desk for Automated Trading in India | Algorithmic Trading Desk for Traders | Contact Us Today !
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An Automated Trading Desk is a must thing in today's generation. Stock market trades are made automatically via Algo Trading Desk. An algorithmic Trading Desk helps traders in many ways
What is an Algo Trading Desk ?
An Algo Trading Desk or Algorithmic Trading Desk is a one-stop solution that helps you automated all your trading requirements. It acts as a bridge between the charting software and the trading terminal. Algorithmic trading can be profitable if executed properly. It started in India in 2008 as the SEBI opened the doors for institutional investors.
How does the Algo Trading Desk Help the Trader ?
Algo Trading Desk helps the trader in many ways. Automated Trading Desk is the computer programming developed for the financial market to accurately executes the trade that can yield profit or help avoid loss. It helps keep the emotions of the traders out and focuses only on trading opportunities.
There are some basic requirements for starting algorithmic trading, such as a high-speed computer, internet connection, financial market knowledge, and coding knowledge.
What Benefits do you Get from an Automated Trading Desk ?
Trades take place at their best possible price.
Trades are executed at the perfect time and can avoid major price changes.
Transaction cost is less
No or minimum human errors involved
Algo trading can be back tested to verify the feasibility of the trade with Automated Trading Desk
No human emotions or psychological factors are attached.
What do you need to Setup an Algorithmic Trading Desk ?
To set up your Algorithmic Trading Desk, you will need to follow the below-mentioned steps:
1. Complete the registration : if you are starting your own automated trading or options trading desk, then you must first register your company.
2. Acquire the capital required for trading operations : you will need the additional funds for yourself and also for your clients.
3. Deciding your trading philosophy : You need to decide which type of trading philosophy you will adopt. Some use arbitrage an scalping, you may use based on your knowledge and experience.
4. Market accessibility : You have to choose what type of membership you need from the exchange board, as there are many, such as trading members and trading cum clearing members. You may also select to perform via a broker. It will eliminate many steps.
5. Setting up an Infrastructure needed : There are various infrastructure needs like colocation, Hardware, Network equipment, and Network lines.
6. Algo Trading Desk or Platform
7. Back testing : The back testing platform helps simulate an algorithmic trading strategy and checks if it is viable to execute the trade with automated trading.
8. Managing the associated risk : This involves monitoring the risk at various levels. Even a delay of some seconds can lead to huge losses, so you need to act fast within milliseconds.
9. Conformance and empanelment : before you go live with any strategy, you need to perform a mock or a demo of your strategy to get approval.
10. Audit and compliance : All the firms are supposed to undergo an audit every six months. In the audit, the firm needs to provide the data such as order logs, trade logs, control parameters, and many more for the past few years.
11. Human resources : Though it is listed last in the list, but you required the team at the beginning. You will need specialists such as traders, strategists, IT people, Risk managers, HR, legal team, Network managers, a marketing person or team, etc. This is not a single person's job; you will need a team of a minimum of 4 to 5 people to handle all the operations smoothly.
So, we have seen what an algo trading desk is, what are the benefits of an Automated Trading Desk to a trader, and what you will need if you want to start your own Algo Trading Desk. Don't hesitate to get in touch with the number below if you want to know more about the algorithmic trading desk.