Algorithm
A set of rules for accomplishing a task in a certain number of steps. One common example is a recipe, which is an algorithm for preparing a meal. Algorithms are essential for computers to process information. As such, they have become central to our daily lives, whether ordering a book online, making an airline reservation or using a search engine.
Algorithms are now used throughout the financial world in areas like loan pricing, stock trading and asset-liability management. For example, algorithmic trading, known as "algo," is used for deciding the timing, pricing and quantity of stock orders.
Algorithms are now used throughout the financial world in areas like loan pricing, stock trading and asset-liability management. For example, algorithmic trading, known as "algo," is used for deciding the timing, pricing and quantity of stock orders.