Decisions Related to the Handling of a Trade
Which of the following statements regarding algorithms is *most accurate*?
Incorrect.
There’s a significant usage of algorithms in global equity markets.
Correct!
The United States treasury market is the primary place where algorithms are used in bond trading due to the fact that US Treasuries are considered risk free.
Incorrect.
Actually, average trading sizes have decreased in general, as market participants try to limit the impact of algorithms on their trading strategies.
Equity markets are the least technologically advanced
The primary use of algorithm trading in bond markets is with United States treasury bonds
Due to algorithms' additional liquidity, trading sizes have generally increased for most asset classes