Algorithmic trading, often called algo trading, refers to the use of computer programs to execute trades based on predefined criteria like price, volume, timing, and other technical indicators. Unlike manual trading, where decisions are made by humans and then executed, algo trading automates both the decision-making and execution process. This offers advantages such as increased speed, reduced human error, and the ability to backtest strategies over historical data. Algo trading uses strategies like trend-following, arbitrage, market-making, and statistical analysis. A typical algorithm may monitor markets in real-time, identify opportunities, and instantly place orders when the criteria match. In India, algo trading is widely used by institutions and is now gaining popularity among advanced retail traders due to better access to APIs and platforms. However, it's important to understand that algo trading requires strong technical knowledge and rigorous testing to avoid faulty executions. SEBI has also introduced regulations to ensure fair usage of algorithms and to reduce the risks of market manipulation. Algo trading is not a shortcut to profits—it demands a sound strategy, risk management, and continuous refinement. It's suitable for traders who are comfortable with both markets and programming. As access to trading APIs becomes more democratized, the popularity of algo trading is expected to grow even further.