Algorithmic trading, automated trading, algo trading or black box trading is a technical development on the stock market. It is a programmed process running on a system that follows a complex series of trading instructions (algorithm) to generate income at a rate and frequency that is nearly impossible for human traders. Automated trading or algorithmic trading is gaining tremendous traction, which is useful for capital markets and is being adopted in countries such as the United States, India and the United Kingdom. The foreign exchange market has seen a rising involvement of algorithmic trading, that is, automated transaction mechanism focused on pre-determined programmes. At the same time, the need to change has become more important to understand its characteristics.