Algorithm Trading through Application Programming Interface (API) in Indian Stock Market

Algorithmic Trading (AT) is a process to execute orders using automated and preprogrammed trading instruction by using Price, Timing and Volume as a variable. Algorithms are designed by approved vendors which work on past data for achieving set objectives. A human emotion free decision taken through ATs. AT came in India in 2008, initially institutional investors started trading with AT, retail investors adopted AT in last couple of years. Indian stock market regulator SEBI trying to protect investors from harms of AT. In recent past SEBI has also released a consultation paper on algorithmic trading by retail investors dated on Dec 19, 2021.This study is examining the current status and strategic analysis of algorithm trading w.r.t to Application Programming (API) algorithm trading in Indian stock market. This study will be useful for all investors using AT or planning to use AT. It will also be helpful for policy makers to frame futuristic policies on algorithmic trading.