What is Algorithm

An algorithm is a set of instructions, typically followed by a computer, in a specific sequential order to solve a problem.

Algorithms can be used for different purposes. In the financial sector, algorithms, for example, are used to automate tedious time-consuming tasks, thereby liberating employees to focus on more core tasks. Examples of financial algorithmic applications include trading, loan pricing, and asset-liability management. A trader, for instance, can use algorithms to automate the stock selling-buying decision by setting a specific price threshold and considering other input data related to market prices.