What is OTR?

What is OTR?

Order to Trade Ratio (OTR) 6.1. Algo Traders tend to place large number of orders, within a small interval of time, to take benefit of the opportunities that may exist for fractions of a second due to small price movements. Algo Trading is, therefore, characterized by high daily portfolio turnover and high order-to trade ratio (OTR). High order to trade ratio naturally raises concerns regarding order flooding, clogging of the pipeline carrying orders to the trading engine, denial of opportunity to other traders to be in front of the order book, etc



Source: https://www.sebi.gov.in/sebi_data/meetingfiles/apr-2018/1524113320566_1.pdf





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