Our articles on the pros and cons of electronic trading and dealing with financial market speed looked at how trading automation software can improve your trading efficiency, particularly if you’re an SME.
But, at this point, you may be wondering what the benefits of using such trading automation software to increase your trading efficiency could be. After all, this should be looked at as an investment just like any other, and spending money on it should result in a return.
So here’s how getting automated trading software could revolutionise the way your company works.
Robot trading software can automate pretty much all your trading, hedging, and financial processes. In fact, it can be used to retrieve, analyse and classify data, generate orders, monitor and control risk, and make decisions on your behalf. It does most of this automatically and autonomously, meaning that you won’t need to have employees using valuable working hours on doing such things manually.
Trading has always been a time-consuming affair; and time, as we know, costs money. By automating the process, any valuable working hours spent on tasks related to research, data retrieval, opportunities identification, and more, could now be spent doing more important tasks. That means that your company will be cutting down on costs without sacrificing on quality. Moreover, robot trading software speeds up the decision-making process, ensuring better decisions in less time.
Reduce Trading Slippage
Discrepancies between the expected price of a trade and the actual price at the time it is executed can make a huge difference to the outcome of your trades. Yet, when doing things manually over Excel sheets or other antiquated software, it can be very difficult to keep up. By using automated trading, you can reduce trading slippage, as the software can make decisions on your behalf based on real-time information checked against your specific criteria.
As more and more companies and investors use electronic trading to interact with the capital markets, the speed at which trading takes place has been slashed – in fact, most trades today are T+1. That also means that information that is manually gathered becomes obsolete much faster. Nevertheless, algo trading, such as that offered by automated trading software, lets you retrieve and consolidate data quicker, giving you access to information that is updated in real-time, all the time. This ensures your decisions are always based on correct and up-to-date information.
Slash Reporting Times
Checking stocks, bonds, and exchange rates takes hours upon hours, and the process is tedious and boring. Quant trading software can easily do it for you at a faster rate, ensuring you save time and money. Moreover, this can be done while reducing risks, increasing your decision-making timeframes, and improving your trading efficiency.
There isn’t much increasing trading efficiency through such software can’t help you with. In fact, it’s the perfect software for systemic trading. If you do give it a try, we’re absolutely sure you’ll start considering this software as an integral part of your trading automation strategy straight away.
Tune in next week to find out what the best automated trading software to improve your trading efficiency is.