Answer of Q 7 is C
Can anyone explain ??
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
Algorithmic trading is generally used to execute trades at lightning-fast speeds based on a predefined set of rules. Hence, it is a good tool to exploit arbitrage opportunities and determine the most cost-effective way to execute trades. Both of these are due to a large number of trading destinations.
For example, consider a stock that trades on 2 domestic exchanges, dark pools, and an international exchange. Because of so many different locations of trading, there may be mispricing in one market, which allows algo traders to exploit this in a fraction of a second.
Hope this helps!
Got it..but why not option a and b
Greater efficiency would hinder the use of algo trading since their would be less mid pricing to exploit.
Trade size has no relation to the same.
Hope this helps😄