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program trading definition - finance
A computer program that automatically executes trades when certain price levels or other milestones are reached. Typically program trading is used to trade large amounts of stocks, which can produce volatility in the market. Stock exchanges have regulations that restrict program trading during volatile periods.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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