Q: Automated Trading • What is it?

Who, where and what performs automated trading and how will this affect or compare with regular longterm investing?

Short bullet point answers if possible, thank you.

‘Bots’ which are programmed to trade based on a pre determined set of parameters.

Hedge funds use them a lot. They do thousands of small trades. I.e buy at 100p sell at 102p but doing that over and over across thousands of shares.

Although for us little people we do of sorts. Buy/sell orders when a stock hits a certain price. This is trading as opposed to what I would call investing over the longer term.

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