Arbitrage Trading Program - ATP

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Barron's Finance & Investment Dictionary:

Arbitrage Trading Program - ATP

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acronym for arbitrage trading program, better known as program trading. Program traders simultaneously place orders for stock index futures and the underlying stocks in an attempt to exploit price variations.
Their activity is often blamed for excessive Volatility.

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Investopedia Financial Dictionary:

Arbitrage Trading Program - ATP

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A program used to place simultaneous orders for stock index futures and the underlying stocks.

Investopedia Says:
The ATP attempts to exploit price variations (market arbitrage). The term is better known as program trading.

Related Links:
Profiting from arbitrage is not only for market makers--retail traders can find opportunity in risk arbitrage. Trading the Odds with Arbitrage
Learn about the systems that run the market. Topics include market makers, specialists, SuperDOT, ECNs, SOES, Level I, II, and III Access, and more. Electronic Trading Tutorial
For those who are new to futures but want a solid understanding of them, this tutorial explains what futures contracts are, how they work and why investors use them. Futures Fundamentals


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