Trading online

Trading online

 is the act of purchasing  and selling financial product through an online trading platforms, these platforms are available to everyone who hopes to make a wealth from online market, trading online include different financial instruments such as bonds, stocks, futures, international currencies or other, its faster than traditional trading, trading online is opening the door to world investments  rang wealthy people to  poor people with a few hundred dollars, the use of online trading daily increase with the high speed of computers and internet connections, it know as self directed investing.

trading online is a type of trading with multiple tools for traders, as the traders can buy and sell orders , check the status of their orders, view the list of securities, view the news of companies, on line trading system helps trader easily have their investment statements, investment taxes forms, furthermore trading online helps to reduce cost for trader and discount brokers to encourage people to do their investing by themselves,also broker commissions is lower than representative commissions of traditional trading.

 in trading online, ,traders open a deal by choosing an instrument, then enter their deal size, finally click buy or sell, some traders also choose a certain investment depending on their emotions, recommendation of friends, advice of an investment advisor or other, most of online traders trade on line through an online brokers, online broker is a brokerage firm which offers its service on the internet, the traders don’t meet brokers face to face, all deals between them happen on the web only, brokerage firms make trading online platforms available to anyone who wishes to trade in financial securities,  moreover online trader much control over their trades than traditional trader , they can be able to manage multiple positions at the same time, also use various system to make profits, one of these system is martingale system which means that the trader double the mount he invest each time he lose, until he hit on a win, and when he do a win, he will recover all his losses plus his initial investments.

in past time of  trading online, trader either visit or telephone their broker to make a trade for him, also when trader is making limit order, the broker has to confirm the limit price and how long to keep the order open for, what account to purchase the shares in, the investment representative must also confirm the commission cost for making the trade, when all has been done, the broker will place the trade in the system which is linked to trading exchange such as new York exchange, trader receive a trade confirmation by mail, also receive monthly statement of his account investments by mail too, when trader want to transfer cash from his trading account to his check account, he need to call broker to make this transaction.

in present time of trading online, trader can carry out multiple trades with nobody else's help,  also can buy and sell financial securities on his own trading,moreover trader are using online trading platform that offered by brokers for do it himself investing, all their transactions can be executed and entered into an electronic format, the order of trade is placed in a database, which checks for the best price by searching all market exchanges, also the exchange with the best price matches the buyer with a seller and sends the confirmation to both within seconds.

before the trader open his trading account with brokerage company, he fill out a questionnaire about his investment and financial history to determine what type of trading account is suitable for him, available securities are depending on the brokers, but not all brokers have all derivatives of securities, so the trader must pay attention to what a broker offer before he sign up with the trading platform.