Question- What do you mean by online stock trading? Give its benefits.

Related Short Answer Questions
1. What do you understand by online stock trading?

Ans.

Online Stock Trading

With the advent of the internet, stock brokers have been used by those who intend to trade large quantities of stock. The average person no longer needs a stock broker as he can trade online. When it comes to electronic trading, for most individual investors, taking a long-term buy-and-hold approach is probably the best strategy. Most of us simply don't have the time or the expertise to trade for a living. But for some investors, trading can be an extremely lucrative profession. There have always been professionals who made their living off of trading. Online stock trading, or e-trading, is the practice of buying and selling stock and other assets using an electronic stock brokerage service.

Information technology is used to bring together buyers and sellers through an electronic trading platform and network to create virtual market places. This can include various exchange-based systems.

Online trading is rapidly replacing human trading in global securities markets. It has a number of advantages.

Online stock trading services allow users to sign up over the internet and conduct stock transactions using a purely electronic interface on the Web.

Online stock trading is the act of purchasing and selling equities on the Internet. The trader buys and sells using an online trading platform. Online stock trading includes, trading in bonds, stocks (shares), futures, etc. Most people trade online through an online broker. An online broker is a brokerage firm that offers its services on the Internet. Unlike traditional brokers, the investor does not meet the broker face-to-face or via the telephone. Everything happens on the web. Brokerage firms make online trading platforms available to anybody who wishes to trade in financial securities. Online stock trading is basically the act of buying and selling equities etc. through an online trading platform.

Online trading forms part of e-commerce. Trading with the help of computer having internet connection and online trading account is Online Stock Trading. People who want to trade themselves, use online stock trading. The approach of trade stocks online has been the most convenient way of trading stock.

Online stock trading has created a lot of opportunities for new-age traders. With the advent of the technologies that are used in the trading arena, it is becoming better day by day for the traders. Online stock trading is more or less like you do online shopping. You just need a few basic things like a bank account, internet connection and internet banking facilities. Along with these, last but not the least, a device from which you can place the order. It is the same for online trading as well A Demat account, trading account and bank account, internet facility and trading platform on your device and you are sorted.

The online trader has much control over trades. They can execute trades considerably faster than they ever could face-to-face or over the telephone. Apart from being able to manage multiple positions simultaneously, the online trader has access to extensive data. Online brokers and other websites provide comprehensive information on companies, exchanges, and markets. The internet has opened the door to the investment world to a wide range of people. Today, not only can wealthy people execute trades, but also individuals further down the socioeconomic ladder. Online trading has given any individual with a computer and some spare cash the opportunity to invest in the market.

Online Trading of Shares means you have an online platform where an investor can buy or sell shares. So, online trading meaning is as simple as it sounds investor can buy and sell the securities online and the fund is also transferred online. With the online trading platform, investor can trade different types of investment vehicles. There are stocks-equities, commodities, mutual funds, and other investment vehicles as well.

Online stock trading facilitates the trading process by bringing the complete trading setup. An investor can trade anytime and from anywhere using the online platforms. There is no paperwork involved, no need to go to the brokerage house or the stock exchange to trade shares. It is all there on the device which you use laptop / desktop or mobile. With a good internet connection, investor can check his investment all the time. He can monitor and place bids and trade shares.

Online trading is a method of trading securities (such as stocks, and bonds), foreign exchange or financial derivatives electronically.

The process of conducting stock market transactions (buy and sell orders) using an electronic platform that transfers the orders to a physical person to complete. Online stock trading has become a popular method due to its ability to conducts transactions quickly and effectively.

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