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Questions and Answers
Which technological advancement allows traders to buy and sell financial instruments electronically without the need for physical exchanges?
Which technological advancement allows traders to buy and sell financial instruments electronically without the need for physical exchanges?
- High-Frequency Trading (HFT)
- Electronic Trading Platforms (correct)
- Blockchain Technology
- Big Data Analytics
What is the primary characteristic of algorithmic trading?
What is the primary characteristic of algorithmic trading?
- Using computer algorithms to execute trades based on predefined criteria (correct)
- Manual trade execution and relying on human decision-making for each trade
- Trading without any data analysis and making decisions randomly
- Only trading during market hours and avoiding any after-hours activity
What does high-frequency trading (HFT) focus on?
What does high-frequency trading (HFT) focus on?
- Long-term investment strategies and holding positions for extended periods
- Executing a large number of orders at extremely high speeds (correct)
- Manual order placement and relying on human traders for each decision
- Reducing market volatility and ensuring stable market conditions
How do Artificial Intelligence (AI) and Machine Learning (ML) transform trading?
How do Artificial Intelligence (AI) and Machine Learning (ML) transform trading?
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What advantage does blockchain technology provide in trading?
What advantage does blockchain technology provide in trading?
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What feature do mobile trading apps offer to individual investors?
What feature do mobile trading apps offer to individual investors?
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What sources of data are commonly used in big data analytics for trading?
What sources of data are commonly used in big data analytics for trading?
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How does cloud computing benefit trading firms?
How does cloud computing benefit trading firms?
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Which of the following is an impact of algorithmic trading on the market?
Which of the following is an impact of algorithmic trading on the market?
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What is a potential concern associated with high-frequency trading (HFT)?
What is a potential concern associated with high-frequency trading (HFT)?
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