Algorithmic trading in energy markets
A different ball game
They made their debut on the stock market, and gained notoriety after the ‘Flash Crash’ of May 6, 2010. Today, algorithmic traders who use computers to execute thousands of trades in seconds have become major players in energy markets, too.
And that has sparked debate among long-time market participants over whether the high-tech newcomers are to be welcomed or feared.
Algorithmic trading comes in many forms, but it can broadly be defined as the use of programs to act on market data and make
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