Algorithmic trading is a method of executing trades in financial markets using computer algorithms. These algorithms analyze market data and make decisions to buy or sell assets, such as stocks or currencies, at high speeds. This approach allows traders to capitalize on small price movements and execute large volumes of trades efficiently. The use of algorithmic trading has grown significantly due to advancements in technology and data analysis. It is commonly employed by institutional investors, such as hedge funds and investment banks, to enhance trading strategies and reduce human error. This method can also lead to increased market liquidity and more efficient pricing.