What are trading bots?

What Are Trading Bots?

Trading bots are software that place and manage trades based on rules you set (or pre-built strategies). Examples: grid bots (buy low, sell high in a range), DCA bots (buy fixed amounts on a schedule), or arbitrage bots. Bots can run 24/7 and remove emotion. They can also lose money if the strategy is wrong or the market changes. You may need to give the bot permission to trade (API keys); never give withdrawal rights. Check fees and backtest if possible. In India, bot-generated trades are still your responsibility for tax.