Algo Trading Dominates 80% Of Stock Market

Jan. 01, 2019 12:04 PM ETSPY, QQQ36 Comments8 Likes
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Real Finance


  • 80% of the daily moves in U.S. stocks are machine-led.
  • Machines are causing sharp drops and rallies based on immediate data releases.
  • Over the last few years, the impact from algo trading has become more visible, especially in 2018.

In the early 2000s, algo trading only consisted of ~15% of market volume in the U.S. stock market. However, algo trading is now used in most large institutional firms and commands 80% of the U.S. market (SPY DJIA QQQ)

Please watch the below video to learn more:

  • Rise in machine trading - benefits and cons.
  • Day traders are put to the test as algo trading continues to rise in popularity.
  • Long-term investors may stand a better chance as algos are focused more on extreme short term (microseconds or minutes).

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Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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