Algorithms are capable of executing trades at instantaneous speeds—within milliseconds and microseconds. A human trading with their motor organs will never be able to trade at the speed of the algo software. Therefore, algorithmic traders are able to capitalise on even the tiniest fluctuations in the price of securities. At the same time, algorithms can even analyse a chart within a split second.
Since algo-trading does not require human intervention to make buying or selling decisions, algo-trades have a much higher accuracy. They are free of all human-made errors. For example, the algorithm will not misenter the quantity of units meant to be traded. It will always enter the correct number of zeros and not carelessly trade 100 units instead of 1000.
