Stock Market Glossary letter P

Program Trading – Program Trading is a practice by which computer programs are used to automate the purchase or sale of large blocks of stock when certain pre-set price points are reached. Popularly used by large hedge funds and arbitrage specialists, program trading has been blamed for causing the 1987 “Black Monday” stock market crash in which American stock markets lost 22.68% of their value in a single day’s trading.

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