Finshots Daily SEBI has an algo trading plan for retail investors
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Dec 19, 2024 Discover how SEBI plans to open up algorithmic trading to retail investors. The discussion highlights new measures aimed at making trading safer and more accessible. It delves into previous challenges faced by retail traders and proposes regulations designed to protect investors. The potential implications for the market and concerns surrounding this shift are also examined, offering a comprehensive look at the future of trading for everyday investors.
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Algo Trading Automation
- Algo trading automates trades based on preset rules for price, timing, and volume.
- This automation frees investors from constant market monitoring.
Limited Retail Access
- Retail investors have limited access to algo trading compared to institutional investors.
- Current regulations restrict retail investors to pre-built algorithms provided by brokers.
Broker-Centric Risks
- The current broker-centric setup for algo trading poses risks for retail investors.
- System glitches, flawed strategies, or broker manipulation can lead to investor losses.