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Development of financial markets depends on IT-based tools

Today the global economy is dependent on new technologies and the capital market is no exception; we must admit that with the increasing role of IT in the economy, the development of financial markets, including the capital market, depends on the continuous creation of information technology-based tools, the managing director of the Stock Information Dissemination and Services Company said.

(SHADA: TEHRAN) -- One of the major international debates now is the smart economy with an information technology-based structure, and trading in financial markets around the world has also shifted from traditional patterns to IT-based tools. The trading process in the capital market has changed dramatically, and simple tools and paper charts have been replaced by fully electronic templates, Yasser Fallah said.

Noting that one of the prominent examples of smart economy is algorithmic trading in the capital market, he added: Algorithmic trading means using machines instead of humans in buying and selling stocks. In this type of trading, the system records the order, price, and volume of orders using data and patterns.

Fallah further said that using algorithmic trading leads to precise adoption of trading strategies, added: Algorithmic trading, as an automatic tool for wealth creation in the capital market, diminishes the role of rumors and is a barrier to price temptation. In algorithmic trading, financial knowledge and information technology are combined, and algorithms and artificial intelligence come to the aid of traders to make better returns on the capital market.

Stating that this type of trading is a link between academics and elites to financial markets, he said