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Note: Fidelity Investments is offering two algorithmic trading strategiesto its most active trader clients, placing them on a more level playing field with institutions.
Retail investors, who may have felt left out of the algorithmic trading game, can now get access to institutional grade trading strategies from Fidelity Investments, according to the brokerage firm.
Yesterday, Fidelity, the Boston-based brokerage giant, said eligible retail investors using its Active Trader Pro platform could take advantage of two trading algorithms originally designed for institutional clients -- namely Volume Average Price (VWAP) and Target Volume (TVOL) algorithms-- to help them navigate the volatile market.
The idea is that retail investors could use the algorithms to break up large orders by executing them throughout the day, rather than submitted all at once, which would incur market impact.
"Algorithms are computer programs that execute large orders...