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Do large companies use trading robots?

December 2, 2022

Yes, many large companies use trading robots, also known as algorithmic trading or automated trading, to assist with their trading activities. Trading robots are computer programs that use algorithms and other mathematical models to automatically make trading decisions, and they are commonly used by professional traders and investors to improve the efficiency and accuracy of their trading.

Large companies may use trading robots for a variety of reasons. For example, they may use trading robots to execute high-volume or complex trades, as the robots can analyze market data and make decisions quickly and accurately. They may also use trading robots to trade 24 hours a day, as the robots can operate continuously without the need for breaks or rest.

In addition, large companies may use trading robots to manage their risk and to ensure that their trading is compliant with regulatory requirements. For example, they may use trading robots to monitor their positions and to automatically close out trades that are approaching their pre-determined risk limits.

Many large companies use trading robots, also known as algorithmic trading or automated trading, to assist with their trading activities. Some of the largest companies that use trading robots include financial institutions, such as banks and brokerage firms, as well as large hedge funds and other investment firms.

For example, JPMorgan Chase, one of the largest banks in the world, uses trading robots to execute a significant portion of its trades. The bank has reportedly been using trading robots for over a decade, and it currently uses them to execute around 70% of its daily trades.

Another large company that uses trading robots is Citadel Securities, a leading global market maker and trading firm. Citadel Securities uses trading robots to execute a significant portion of its trades, and it has been reported to use them for around 70% of its daily trading volume.

Overall, many large financial institutions and technology companies use trading robots to assist with their trading. These companies use trading robots to improve the efficiency and accuracy of their trading, and to manage their risk.

“There is no better teacher than history in determining the future… There are answers worth billions of dollars in a $30 history book.” – Charlie Munger

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