Ever tried a Guerilla or a Sniper strategy? These popular algorithms or complex mathematical formulas that determine the best buying or selling prices are being offered by Goldman Sachs India and Credit Suisse India to international clients investing in India.
It has picked up in recent months, even though the Securities and Exchange Board (SEBI) of India allowed investors to buy and sell orders directly into the stock exchange in 2008. As directmarket access reduces the time to execute the order, algorithm trading can be used more efficiently.
So, how does it work? A Sniper technique, for instance, executes orders for not so-frequently traded stocks as and when the shares are available at a target price set by the investor.
