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Volume Participation Algo


A trading algo that is used by electronic traders to target a specific order execution volume in line with the market volume. That is, traders can control the percentage of their execution depending on the actual market volume (printed volume). This algorithm seeks to reach a given market share by placing orders in proportion to market activity. For example, a 10% participation algorithm for a given stock whose average daily volume is 10 million shares would trade 1 million shares.

Volume participation algorithms can be used to sort out imbalances between supply and demand of a security.


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