Online
Trading is an internet based investment
activity which eliminates the association of a broker. Anyone who has a
computer, enough money to open an account and reasonable financial history has
the ability to invest in the market. Nowadays there are many online trading companies working
as portals for the biggest stock houses for both equity shares and even mutual
funds trading. If you are pursuing abundance, click here for free copy of “What You
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The online trading companies allow the users to invest in a
number of financial products and services like equities, mutual funds, life
insurance, loans, share trading, forex trading, commodities trading,
institutional trading, general insurance and financial planning.
An online
trading community provides participants with a structured method for
trading, bartering, or selling goods and services. These communities often have
forums and chat-rooms designed to facilitate communication between the members.
An online trading community
can be likened electronic equivalent of a bazaar, flea market, or garage sale.
Various companies and online trading simulation tools
offer paper trading services, some free, others with charges, that allow
investors to try out various strategies (some stock brokerage firms allow 14
day 'demo accounts'), or paper trading can be carried out simply by noting down
fees and recording the value of investments over time.
The person has to get registered with
the online trade portal and
get into into an agreement with the company to trade in different kinds of
securities by accepting the terms and conditions. The online trading portals are connected to the stock exchanges
and the assigned banks.
In finance, an electronic trading
platform also known as an online investing
platform, is a computer software program that can be used to place orders for
financial products over a network with a financial intermediary. This includes
products such as stocks, bonds, currencies, commodities and derivatives with a
financial intermediary, such as brokers, market makers, Investment banks or
stock exchanges. Such platforms allow electronic trading to be carried out by
users from any location and are in contrast to traditional floor trading using
open outcry and telephone based trading.
Investors who trade through an online
brokerage firm are provided with a online
trading platform. This online
trading platform acts as the hub, allowing investors to purchase and sell
such securities as fixed income, equities/stock, options, and mutual funds.
Included with the platform are tools to track and monitor securities,
portfolios and indices, as well as research tools, real time streaming quotes
and up to date news releases; all of which are necessary to trade profitably.
Often, more robust research tools are available such as full, in depth analyst
reports and analysis, and customized back-testing and screeners to see how
particular investment strategies would have been realized during different
historical periods.
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