Algo trading is a form of automated trading using pre-programmed algorithms. The aim is to exploit the market movements and optimize results by changing leverage, strategy, and stop-loss levels. Algo trading is specifically a way of trading and involves your computer running algorithms for purchasing and selling options. There are many different types of algo trading, including the traditional arbitrage trading. Algorithmic trading is a way to exploit market inefficiencies and opportunities for higher profits. It involves making use of computer algorithms to do the work of human traders. Today, algorithmic trading has become an integral part of the financial markets because it helps establish rules and logic that allow algorithms to take actions based on a number of inputs, to guarantee that such actions are 100% efficient.