RT Journal Article SR Electronic T1 Algorithmic, Electronic, and Automated Trading JF The Journal of Trading FD Institutional Investor Journals SP 78 OP 86 DO 10.3905/jot.2012.7.4.078 VO 7 IS 4 A1 Ayub Hanif A1 Robert Elliott Smith YR 2012 UL https://pm-research.com/content/7/4/78.abstract AB Many novel techniques have found prominence in empirical finance and particularly in algorithmic trading, yet there is a distinct lack of a comprehensive primer to this vast, dynamic field. This article highlights key concepts, terminology, and phenomena within algorithmic trading. We commence by analyzing and detailing market participation over the past few decades. We provide a thorough treatment of the trading mechanisms, forecasting and prediction, regulatory reform, and liquidity provisions that have brought about algorithmic trading. We further describe some of the common strategies used by high-frequency traders, providing a concrete example to codify the theory. We also describe the technological development fundamental to this trading paradigm. This article serves as a basic review of algorithmic trading microstructure and equips the reader with a coherent understanding of markets, algorithmic trading, and technology alongside associated challenges.TOPICS: Technical analysis, exchanges/markets/clearinghouses