Traders who buy options in India are increasingly looking toward algo trading since it makes for a faster, more organised, and much easier way to trade. For those who want creative strategies to grow their capital, algorithmic trading is turning out to be the best way to do so. Algo trading uses computer programs to automatically buy and sell based on specific criteria.
This is dramatically changing the landscape of option trading in India, as the leading brokers and creative start-up firms like Combiz Services Pvt Ltd are leading the way, making automated trading simple and easily accessible. In this landing page let’s look at why option buyers are moving toward algo trading and how that will help the future of the stock market.
There is a massive surge in the popularity of algo trading in India, and it is growing at an unparalleled rate. It is reported that by 2025 nearly 57% of equity trades and almost 70% of derivative trades (inclusive of options) are to be executed by algos. A huge departure from previous years before algo trading swept into the market, automation is fast becoming the new normal for both retail and professional traders.
The advancement of technology has enabled anyone with a smartphone to automate trading. Young investors that represent nearly 40% of new demat accounts are driving the demand for simple algo platforms. It’s obvious that algo trading is going to be the future of option trading in India.
Speed is everything for option buyers. Option prices can change in seconds, and a few seconds lost can amount to loss of profits. While manual trading relies on human judgement, an algo trading strategy can execute trades immediately once the referring conditions are met.
This means that buyers will never miss an opportunity because of hesitation, delay, or slippage. With Combiz algo trading solutions, traders will be able to get in and out of trades as the time is right. The advancement of technology has enabled anyone with a smartphone to automate trading. Young investors that represent nearly 40% of new demat accounts are driving the demand for simple algo platforms. It’s obvious that algo trading is going to be the future of option trading in India.
Speed is everything for option buyers. Option prices can change in seconds, and a few seconds lost can amount to loss of profits. While manual trading relies on human judgement, an algo trading strategy can execute trades immediately once the referring conditions are met.
This means that buyers will never miss an opportunity because of hesitation, delay, or slippage. With Combiz algo trading solutions, traders will be able to get in and out of trades as the time is right.
As per the report by SEBI, almost 90% of retail traders lose money when participating in options trading. The number one reason? Emotional decisions; taking revenge on your losses or holding onto trades out of greed.
With algo trading, the decisions are rule-driven. There are no emotions. No panic, fear, or greed. This discipline aids option buyers in India, as they can stick to their strategy rather than making expensive mistakes.
In the past, only large institutions or coders could benefit from algorithms when trading outlook positions. Now, through no-code algo trading platforms, the game has completely changed. Even someone just starting out can set an automated option trading strategy without knowing coding.
Through businesses like Combiz Services Pvt Ltd, option buyers can access templates, backtest the strategies, and implement them for live trading. This new wave of no-code businesses promotes algorithmic trading strategies for all customers, not just techies.
One of the key benefits of algo trading for option buys is a reduced cost. Algorithms can optimise order execution to reduce slippage, and they can occasionally also save costs by obtaining better prices than manual trades.Saving costs leads directly to more potential profit for traders.
Risk management is of utmost importance in options. Algo platforms come with native tools designed to help manage all of the following risks:
These tools allow option buyers in India to limit their losses, to protect their capital, and to trade with confidence.Combiz algo trading software, in particular, is known for effective risk management across the board.
India now accounts for 81% of the worldwide F&O volumes. With all of the trading activity, algo trading allows for traders to have access without having their eyes on their computers continuously. The system reads the market, completes trades, and manages risk while you are away from your screens.Ultimately, algo trading software is intended to save option buyers time to ultimately access their profitability.
India now represents 81% of all global F&O volumes (financial futures and options). If so much volume is being traded in an environment like this, algo trading allows traders to stay involved without staring at their screens. The system will monitor the market, place trades, and manage risks on your behalf—allowing option buyers more time to purchase.
Today, brokers and platforms operating in fintech are making algo trading on options simple and effective by offering:
There is a clear reason for the rise of algo trading among option buyers in India – speed, efficiency, trading without emotion, low cost, and of course, risk mitigation. With an ever-growing support infrastructure offering the needed investor platforms, followed by service providers like Combiz Services Pvt Ltd, automating formerly manually constructed rules is no longer a luxury but a necessity for serious option traders in India.
In contrast, algo trading doesn't just signify a changing of the rules – it is a new way of life for Indian option buyers who want smart, fast, and powerful mechanisms to achieve their trading goals!