Algorithmic trading, also known as algo trading, is a modern method of market trading that utilizes computer software programmed to execute a predetermined set of mathematical instructions, referred to as an algorithm. This technology empowers the simultaneous execution of multiple trades. By employing formulas based on factors such as price, timing, quantity, and mathematical models, algorithmic trading follows specific strategies. With the ability to execute thousands of trades swiftly and consistently, algorithmic trading surpasses the capabilities of human traders. This technology enhances market liquidity and profitability while minimizing the potential impact of human emotion and errors that can hinder trading decisions.