What is autodime?

Autodime refers to the phenomenon where two or more computer-controlled trading programmes (algo trading) compete with each other by constantly minimally improving the bid and/or ask prices of other programmes. This is done in the hope of executing potential orders sooner and thus gaining an advantage.

The word "dime" can here be read as "cheap", which indicates the minimal adjustments that are made. This phenomenon is relevant in the context of automated trading and algorithmic investing.