Algorithms do the trading

New York Stock Exchange

In 2011, 83% of US stock trading sell orders were placed by algorithms.

Algorithms and high-frequency trading were the probable culprits of the 2010 Flash Crash, when the Dow Jones Industrial Average dropped 600 points in about five minutes (about 5.4%). However, as the market and the methods have matured, may be something we just don’t have to worry about any more.


Image:

New York Stock Exchange.

By Kevin Hutchinson (Flickr) [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)%5D, via Wikimedia Commons.

https://commons.wikimedia.org/wiki/File:NYSE.jpg

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