The Need for Regulated Algo Trading for Retail Investors

Algo trading offers retail investors a way to automate trading processes, enabling them to participate in the stock market without the necessity of constant monitoring. By programming specific parameters for trades, investors can capitalize on market movements, such as buying textile stocks when prices rise by a certain percentage. However, until recently, retail investors in India have faced significant limitations, relying on pre-built algorithms provided by brokers. The push toward regulation aims to address these imbalances, ensuring safer participation for retail investors who have been disproportionately affected by market volatility and high-frequency trading executed by institutional investors.