Program Trading

What is Program Trading?

Program Trading meaning The purchase (or sale) of a large number of stocks contained in or comprising a portfolio. Originally called program trading when index funds and other institutional investors began to embark on large -scale buying or selling campaigns or ‘programs’ to invest in a manner that replicates a target stock index, the term now also commonly includes computer-aided stock market buying or selling programs, and index arbitrage.

 

reference: U.S. COMMODITY FUTURES TRADING COMMISSION – CFTC Glossary

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