What is the primary goal of using algorithmic trading?

"To analyze market trends" "To predict future stock prices" "To generate profit through automated trading" "To provide investment advice to traders"

Which of the following is NOT a benefit of algorithmic trading?

"Reduced risk of manual errors" "Trades executed at the best possible price" "Increased emotional influence on trading decisions" "Simultaneous checks on multiple market conditions"

What is a key characteristic of the Trend Following Strategy in algorithmic trading?

"It relies on predicting future price movements" "It is based on identifying temporary price fluctuations" "It involves trading on a combination of options and underlying security" "It capitalizes on established market trends like moving averages"

How does the Index Fund Rebalancing Strategy create opportunities for algorithmic traders?

"By exploiting price differences during index fund adjustments" "By using complex mathematical models to predict market movements" "By analyzing historical volume profiles to execute large orders" "By dividing large orders into smaller chunks based on time slots"

Which of the following is a technical requirement for implementing algorithmic trading?

"Access to insider information about companies" "A team of experienced financial analysts" "Network connectivity and access to a trading platform" "A large investment capital to start with"