black-box trading

Black-box trading refers to automated trading systems where the decision-making process is hidden from users and analysts. These systems use complex algorithms and vast data inputs to execute buy and sell orders quickly and efficiently. Because the internal workings are not transparent, traders know only the outcomes, not how or why decisions are made. Such systems can capitalize on market opportunities at high speeds, but their opacity can also pose risks if they malfunction or behave unpredictably. Overall, black-box trading emphasizes automation and rapid execution, often used by institutional investors to gain a competitive edge.