The Rise of AI in Trading: How Artificial Intelligence is Reshaping Global Markets
Introduction Artificial intelligence (AI) is reshaping financial markets today with unprecedented levels of efficiency, speed, and data analysis. By February 21, 2025, AI-powered trading systems are disrupting traditional strategies and redefining the role of traders and financial institutions across the globe. Understanding AI in Trading In trading, AI is characterized by the use of advanced machine learning algorithms, natural language processing methods, and deep learning methods to process large datasets, detect complex patterns, and make trades with minimal human involvement. These systems can process complex financial information at speeds impossible for humans, allowing them to make split-second decisions that effectively capture market movements. Key Applications of AI in Trading Algorithmic Trading uses AI to create algorithms that make trades based on predetermined criteria, such as price, volume, and timing. High-Frequency Trading (HFT) is a subset that uses AI to execute th...