Program Trading
Computerized trading undertaken by large institutions to exploit differences in price between expiring stock index futures and the underlying stock when both ought to be equal.
Program trading is a generic term used to describe a type of trading in securities, usually consisting of baskets of fifteen stocks or more that are executed by a computer program simultaneously based on predetermined conditions.
Definition
Program trading
Computer-triggered, simultaneous buying and selling of securities in different exchanges to take advantage of price differences in two or more markets.
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Program trading is the purchase or sale of at least 15 different stocks with a total value of $1 million or more.
Program Trading
The purchase (or sale) of a large number of stocks contained in or comprising a portfolio.
Program Trading
Program trading is carried out by large institutions and money managers. Program trading should not be confused with automated trading. It actually has nothing to do with automated stock market trading systems.
PROGRAM TRADING Trades based on signals from computer programs, usually entered directly from the trader's computer to the market's computer system and executed automatically.
Program Trading
Computerized trading used primarily by institutional investors typically for large-volume trades. Orders from the trader's computer are entered directly into the market's computer system and executed automatically.
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Program Trading
Trades entered into a computer program to be executed automatically.
Program Trading- This is the method used to take advantage of arbitrage possibilities. It occurs automatically when created.
Qualitative Analysis- This means understanding the qualities of a company.
Program Trading (or Program Activity) - Buying or selling packages of stocks. Often done by institutions making a strategy change or index funds moving into or out of the market.
Program trading
Stock trades involving the purchase or sale of a basket including 15 or more stocks with a total market value of $1 million or more.
Program Trading - computerized trading system in which currency buy/sell signals are generated by a specially developed program.
Q
Quotation - the price of one currency, indicated in the units of another currency.
Program trading
Use of computer-based market analyses programs for a computerized specification of buy and sell decisions based on mathematical models.
Program trading: Computer-aided trading where orders are automatically generated at trigger points.
Progressive tax: A tax that rises in rate as the taxpayer's income increases; for example, income tax.
Program trading is a term that is also used in at least two different (though similar) meanings. The original use of the term was used to mean that stocks would be sold according to a set program.
Program trading was a new tool, and was introduced to take advantage of rapid market movements.
Program trading
Computer buying (buy program) or selling (sell program) of baskets of 15 or more stocks by index arbitrageurs, specialists, or institutional traders.
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Program trading Â- Algorithmic trading Â- Prime brokerage Â- Trend following Â- Day trading
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Sometimes called program trading.
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Market Surveillance
The department responsible for investigating and preventing abusive, manipulative, or illegal trading practices on The NASDAQ ...
A restriction on index-arbitrage trading, which is also called program trading. Collars are imposed to keep markets stable by restricting extreme price movements. An example of a collar is the one instituted by the New York Stock Exchange.
Program trading is the use of computers to engage in arbitrage and portfolio insurance strategies. Through the 1970s and early 1980s, computers were becoming more important on Wall Street.
Intra-day analysis where sharp price changes occur on high volume in a short period of time can sometimes be attributed to program trading.
(1) natural, (2) not dividend roll-or program trading-related; (3) not tax-related. "Real" indications have three major repercussions: a) pricing will be more favorable to the other side of the trade since an investment bank is not committing any ...
For example, the New York Stock Exchange in the United States has a curb plan that relates to program trading.
In case you are doing program trading, then you're gonna need to be able to back test those programs, no questions asked; this is a must have feature. You possibly can make variations, for example, on how far back that you will have a system go.
Basket also refers to a group of 15 or more securities with a combined value of $1 million that institutional investors and arbitrageurs assemble to use in program trading.
See: Program trading.
Arbitrageur
One who profits from the differences in price when the same, or extremely similar, security, currency, or commodity is traded on two or more markets.
Basket A vehicle for program trading by institutional investors that allows the purchase of all the stocks in a certain category.
Applies to derivative products. Firm proprietary software that stores, and sends baskets of stock through SEAQ to either the NYSE or the curb for program trading.
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This fund usually used by wealthy investors and institutions, which allow them to use aggressive strategies, including selling short, leverage, program trading, swaps, arbitrage and derivatives.
Clip 3: Learn why price is doing what it does because identical patterns will produce different outcomes, in response to shifts in seasonality and program trading activity.
Predicting Market Trends ...
Baskets usually play a big role in hedging, index arbitration, and program trading. A country basket allows investors to hold several stocks in his portfolio and not subject him to numerous transactional costs, and /or multiple securities.
At other times they break down unexpectedly, the 1994 collapse in bond prices world-wide being a case in point. When this happens scapegoats are quickly identified. In 1987 it was "program trading", in 1994 it was "hedge funds".
Penny Stock A stock that typically sells for less than $1 a share
Pre-Market Trading Investors may trade between 8 and 9:30 ET
Program Trading Computerized trading that is entered directly into the markets computers and happens ...
program trading A type of computer-driven and automatically-executed program to trade securities,... progressive tax A tax system in which those who earn higher incomes pay a higher percentage...
 See also: Trading, Market, Stock, Future, Exchange
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