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Topic: Program trading

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	Program Trading, by Dean Furbush: The Concise Encyclopedia of Economics: Library of Economics and Liberty
		Program trading, the subject of considerable controversy in recent years, is the simultaneous trading of a portfolio of stocks, as opposed to buying or selling just one stock at a time.
		These professional investors execute their diversified trades directly in the stock market as program trades or in the futures and options markets, where investors or speculators can trade contracts that are tied to changes in market indexes such as the Standard and Poor's 500.
		Program trading did not cause the 508-point drop in the Dow-Jones industrial average that occurred on October 19, 1987.
	www.econlib.org /library/Enc/ProgramTrading.html (2167 words)

	AllRefer.com - program trading (Money, Banking, And Investment) - Encyclopedia
		Program traders exploit the price discrepancies between indexes of stocks and futures contracts by using sophisticated computer models to hedge positions.
		Program trading (also called computer-assisted trading) arose with the advent of computer and telecommunication technologies, whereby trade in different markets could be monitored simultaneously and manipulated accordingly.
		Because the size of the transactions often caused massive jolts in the stock market, many concluded that program trading was largely responsible for the 500-point drop in the Dow Jones Industrial Average on Oct. 19, 1987.
	reference.allrefer.com /encyclopedia/P/programt.html (275 words)

	Regulation Magazine Vol. 14 No. 2
		For program trading, economic theory and empirical evidence are so clear that economists--famous for their disagreements--are nearly unanimous in the view that program trading plays a relatively neutral role with respect to stock prices.
		Program trading does not have to be, and generally is not, computer-initiated.
		It concluded that program trading was a "significant factor in accelerating and exacerbating the declines" That conclusion was supported within the report primarily by reference to two facts: there was a lot of program trading on October 19, and prices fell significantly on October 19.
	www.cato.org /pubs/regulation/reg14n2f.html (4419 words)

	The Power Of Program Trades
		Program trades are almost always executed by computers, although there are instances when this isn't the case.
		Given the amount of liquidity that program trading contributes to the stock and futures markets, its effect is probably more beneficial than not, even during sharp corrections.
		Program trades represent a large chunk of any given day's market activity and their impact on market movements is important.
	www.investopedia.com /articles/trading/07/program_trading.asp (1224 words)

	Program trading@Everything2.com
		Program trading allowed automatic sell orders to be placed at preset prices, investors immediately responded by selling issues of their own, and then additional program trading kicked in to drive stocks even lower.
		Program trading are transactions, usually computer-generated, that result in orders to sell huge amounts of stock under pre-set circumstances.
		If, in a single day of trading, the Dow Jones Industrial Average were to fall by 10%, the circuit breakers would kick in and trading on the floor of the Exchange is halted for one hour.
	everything2.com /index.pl?node_id=400613 (1214 words)

	EGO Magazine: Program Trading
		Program trading became popular in the late eighties and the nineties as computer technology and connectivity became easier.
		Program trading by its very nature has a high degree of automation and the term was inspired by the fact that this type of trading is almost always performed electronically and therefore involves computers.
		Trading algorithms may or may not be used alongside with a large basket of orders, but more often than not they are since they go hand in hand in today’s trading environment.
	www.egothemag.com /archives/2006/01/program_trading.htm (2555 words)

	TimingCube - Market safety valves - program trading collars and curbs, stock market circuit breakers, trading delays ...
		Program trading has come to represent an ever growing and now dominant percentage of the transactions on U.S. stock exchanges as it is now averaging above 60% of the total.
		Program trading, sometimes referred to as algorithmic trading, designates the use of computer programs to decide when, at what price, and in what quantity an order should be placed, and to place such orders automatically without human intervention.
		When the "curb is in", program trades can only be executed on an uptick for sales or a downtick for buys, which is thought to limit volatility and prevent the program trades from providing positive feedback and amplifying the price movement.
	www.timingcube.com /083107 (1487 words)

	Lope Markets - Program Trading
		Program trading is a computer-assisted method to trade markets, and can be divided into two types.
		Those who blame program trading save themselves from this line of reasoning by stating that international markets were simply all watching and reacting to a leading U.S market.
		Furthermore, the program theory's circularity leaves something to be desired - it requires an initial decline to explain a final decline, focusing on the process by which the final decline might come about but forgetting to give an account for the initial decline.
	www.lope.ca /markets/1987crash/progtr.html (1684 words)

	[No title]
		Program trading is loosely defined as any type of computerized trading methodology where the purchase or sales decision is determined by a computer program.
		Program trading is defined as a wide range of portfolio trading strategies involving the purchase or sale of 15 or more stocks having a total market value of $1 million or more.
		Trades that originate from an automated program analyzing real-time data are not "program trades" unless the trade "strategy" involves 15 or more stocks, regardless of whether the total value of the automated trade exceeds $1 million.
	news.briefing.com /GeneralContent/Investor/Active/ArticlePopup/ArticlePopup.aspx?ArticleId=NS20071205141251AheadOfTheCurve (1107 words)

	Program Trading, Fair Value, Index Arbitrage Values - indexArb.com
		Buy programs occur when the futures market is over-valued relative to the stock market and consists of the index futures being sold and the stocks in the index being bought.
		Sell programs, the opposite case, occur when the futures market is under-valued relative to the stock market and consists of the index futures being bought and the stocks in the index being sold.
		A sell program is the simultaneous (short) sell of all (or almost all) the stocks in the index (in weighted proportions) and the purchase of the index futures contract.
	www.indexarb.com (968 words)

	Welcome to Program Trading Solutions!
		Program Trading Solutions offers diversified automated trading systems that are robust across multiple markets, their world-class team of technology experts have built new best of breed Algorithmic trading systems.
		Using these proprietary algorithmic trading systems, Program Trading Solutions offer unique systems that are designed to improve the accuracy and efficiency of the automated trading process.
		Simulated programs in general are also subject to the fact that they are designed with the benefit of hindsight.
	www.programtradingsolutions.com (177 words)

	[No title]
		While such trades do not have to be actually determined and placed automatically by a computerized analysis system, nearly all program trading results from such a system.
		Firms placing program trades are required to report if their trades are related to index arbitrage.
		While there may be some "client" program trading activity occurring in the category of "as agent," the more likely scenario is other member firms "renting" the capabilities of the reporting firms' systems for their own use.
	www.briefing.com /GeneralContent/Investor/Active/ArticlePopup/ArticlePopup.aspx?SiteName=Investor&ArticleId=NS20071207140149AheadOfTheCurve (942 words)

	++ Forex trading program, commodity traders, trading technique, program
		For this reason, we’ve spent 2 years to research, test, refine and simplify Mscsrrr forex trading program to remove most of the risk and to make it easy for the average person to do safely.
		We’ve described in details what Mscsrrr program is and how it works and we’re giving you full disclosure, so that you’ll be responsible for whatever decision that you make.
		Inside the ebook, we’ll refer you to the website of a professional broker where you may download a free trading software and also open and do the free demo account trading and thereafter, when you’re ready, then you may open a live paid account.
	www.mscsrrr.com /mscs3.htm (737 words)

	Buyside Ups the Ante in Program Trading
		Program trading is booming, but the share of flow reaching the sellside is in decline.
		And according to the 135 institutional equity buyside desks the Greenwich study surveyed, program trades represented roughly half of their total equity trading volume.
		Program, or portfolio, trades are defined as those involving 15 or more stocks valued at more than $1 million.
	www.tradersmagazine.com /issues/20_276/100219-1.html?portal=programtrading (674 words)

	CAPIS Formalizes Program Trading Desk
		Program trading is traditionally employed to trade entire portfolios more efficiently.
		Through detailed analytics, customized trading strategies, and advanced technology, the goal of CAPIS program trading is adding value to list trading and, in some cases, individual orders.
		CAPIS program trading will ensure transparency to the market and anonymity at all times by breaking orders into small waves that are nearly invisible to the market.
	www.capis.com /pr20040301.html (486 words)

	Stormchaser Technologies -- Making your work easier
		Program trading attempts to arbitrage the inefficiencies between where the SandP futures are trading and where the SandP cash contracts are trading.
		A detailed explanation of Program Trading is beyond the scope of this tutorial, but suffice it to say that a massive amount of Research and Development has gone into this module.
		Now you can not only know when Program Trading is about to hit, you can take advantage of the knowledge to close positions and open new ones in the direction of the program Trade.
	www.stormchasertech.com /programtrading.html (603 words)

	Program Trading as supplied by EagleTraders.com
		Program traders try to buy a stock index futures contract, such as the SandP 500 stock index, when it is cheap relative to the prices of the underlying stocks, and sell it when it is high.
		The last hour of trading on the stock exchange during the last day of each quarter has come to be known as the “triple witching hour,” the hour at which futures, options, and index options contracts all expire at the same time.
		In 1989, many major players in program trading withdrew from all forms of program trading and criticized rival brokerage firms about their role in this controversial trading strategy.
	www.eagletraders.com /advice/securities/program_trading.htm (568 words)

	Capital Institutional Services
		Increasingly, investors are using program and portfolio trading solutions to efficiently implement their investment decisions.
		Program trading has traditionally been employed to more efficiently trade entire portfolios.
		A program trading desk enables orders to be broken up into small waves that are nearly invisible to the market.
	www.capis.com /programtrading.html (410 words)

	DON'T FRET ABOUT PROGRAM TRADING It has been blamed for making stocks more volatile and for at least part of the big ...
		The Kidder program is always prepared to tell you the potential return from ''unwinding'' the transactions before expiration -- that is, selling the stocks and covering the futures contract -- as opposed to holding on and settling for arbitrage profits.
		However, repeated studies have shown that the stock market in the age of program trading is not in general more volatile than it used to be and is probably less volatile.
		Asked whether program trading is a real problem or just a matter of perceptions, he answered sadly: ''We live in a world of perceptions.'' He is certainly right about that.
	money.cnn.com /magazines/fortune/fortune_archive/1986/10/13/68142/index.htm (1871 words)

	eBay Trading Assistant Program
		Trading Assistants are experienced eBay sellers in your area who will sell your items for you on eBay for a fee.
		Trading Assistants will do all the work for you, from listing an item and answering customer service inquiries, to collecting payment and shipping the item to the winning buyer.
		Trading Assistants are not employees or independent contractors of eBay, nor do we endorse or approve them.
	pages.ebay.com /tahub/index.html (356 words)

	Barra \| Newsletters \| NL165 \| Equity Program Trading
		The mechanism of a program trade calls for the seller of the portfolio to exchange information with the quoting broker so that he or she is able to determine the trade's price.
		If the trade has a favorable impact, the trader may be more aggressive in pricing the program, compared with pricing in isolation, and vice versa.
		The U.K. Equity Trading Model uses the latest risk-modeling techniques to help equity traders manage the short-term risk within their books, and is the first of a series of planned enhancements to BARRA's risk models and applications to meet and exceed the demands of the trading community.
	www.barra.com /newsletter/nl165/EqProgramTradingNL165.asp (1461 words)

	program trading on Encyclopedia.com
		CME Extends Global Electronic Incentive Programs and Launches New FX Promotion Program for Large Hedge Funds and Commodity Trading Advisors.
		Trading: BoNY becomes a leader in commission recapture; But many wonder about Lynch, Jones deal in industry that some believe is endangered.(News)
		Ty Pennington, the carpenter on the Learning Channel TV program "Trading Spaces," is packaging his home improvement and decor ideas into a new book titled "Ty's Tricks."
	www.encyclopedia.com /html/p1/programt.asp (536 words)

	Kesef Trading - Government Bond Plus Trading Program
		An investment in our trading program should only be made with risk capital.
		Although trending markets are the exception rather than the rule, the trading programs of many money managers require prices to be trending in order to be successful.
		Whether prices are moving higher, lower or sideways (choppy and trendless) it makes no difference – in any market environment our trading strategies have an equal potential for profit and because of this reason we hope you consider us.
	www.keseftrading.com (411 words)

	Program Trading Averaged 25.9 Percent Of NYSE Volume During Jan. 14-18
		Program trading encompasses a wide range of portfolio-trading strategies involving the purchase or sale of a basket of at least 15 stocks with a total value of $1 million or more.
		In all markets, program trading by member firms averaged 3,205.3 million shares a day during Jan. 14-18. About 40.7 percent of program trading took place on the NYSE, 0.7 percent in non-U.S. markets and 58.6 percent in other domestic markets, including Nasdaq, the American Stock Exchange and regional markets.
		The NYSE calculates program trading as the sum of shares bought, sold and sold short in program trades. The total of these shares is divided by the sum of shares bought, sold and sold short on the NYSE including its crossing sessions.
	www.mondovisione.com /index.cfm?section=news&action=detail&id=72172 (257 words)

	Program Trading Buy/Sell Execution Levels
		Index arbitrage is only a very small part of program trading and is not relevant for the great majority of traders.
		If you would like to know who is doing all of this program trading click here.
		Our program trading premium execution levels listed above, are the actual price levels that our clients will use today to execute computer assisted buy and sell programs for many different program trading strategies.
	www.programtrading.com /buysell.htm (583 words)

	Program Trading
		Computerized trading used primarily by institutional investors typically for large-volume trades.
		Program trades are usually executed if index prices sink or rise to a certain level.
		As a result, there are restrictions on times when program trading can be used.
	www.investopedia.com /terms/p/programtrading.asp (118 words)

	Stock Trading Coaching Program - Make Consistent Profits with Stock Trading
		One of the key factors for trading success is confidence, in both yourself and the trading strategy you’re using.
		Our stock trading template comes with two, very easy-to-understand risk approaches, and it is up to you and your comfort level to find the one that fits you best.
		Both trading strategies use a 10% stop loss, but to tell you the truth, this is really just a worst case scenario.
	www.rockwelltrading.com /stocktradingcoach/stc_about.html (1931 words)

	Program Trading
		Using our straight forward API, programs can be bound to our fast direct to market trading engine.
		The API allows individual clients who are conversant with computer programming to place trades using their own customer built visual interface.
		The client program can use the API to communicate with our order entry system and place trade requests, which are then executed in the same fashion as if placing trades through the Just2Trade web-based trading system.
	www.just2trade.com /html/program_trading.php (305 words)

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