Internet stock trading meaning and features


Some platforms have been specifically designed to allow individuals to gain access to financial markets that could formerly only be accessed by specialist trading firms. They may also be designed to automatically trade specific strategies based on technical analysis or to do high-frequency trading. Transactions have traditionally been handled manually, between brokers or counterparties.

However, starting in the s, a greater portion of transactions have migrated to electronic trading platforms. These may include electronic communication networks , alternative trading systems , " dark pools " and others. The first electronic trading platforms were typically associated with stock exchanges and allowed brokers to place orders remotely using private dedicated networks and dumb terminals. Early systems would not always provide live streaming prices and instead allowed brokers or clients to place an order which would be confirmed some time later; these were known as ' request for quote ' based systems.

Trading systems evolved to allow for live streaming prices and near instant execution of orders as well as using the internet as the underlying network meaning that location became much less relevant.

Some electronic trading platforms have built in scripting tools and even APIs allowing traders to develop automatic or algorithmic trading systems and robots. The client graphical user interface of the electronic trading platforms can be used to place various orders and are also sometimes called trading turrets though this may be a misuse of the term, as some refer to the specialized PBX phones used by traders.

During the period from to , the development and proliferation of trading platforms saw the setting up of dedicated online trading portals, which were electronic online venues with a choice of many electronic trading platforms rather than being restricted to one institution's offering. From Wikipedia, the free encyclopedia. For saving, tax-advantaged retirement options such as a k or an IRA can be a smart choice.

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