Article

Electronic Trading Platforms - An Effective Means of Day Trading

20 Feb 2020

In the last 8-10 years there has been a massive proliferation of electronic trading in India and that has been largely helped by better broadband connectivity and the launch of low cost trading. Be it trading over the internet or trading via mobile apps, the millennial traders and investors are increasingly opting for the electronic platform route. The bigger question is why do intraday traders exhibit a preference for online trading platforms like the PC, laptop and mobile app trading? There are 5 major reasons why online trading has been a big hit with intraday traders.

Online trading platforms give speed of execution

This is an advantage you fully appreciate only when you start trading. Imagine that you have to call up the dealer, place the order, wait for the confirmation and then go through the same ordeal when you reverse the position. Apart from being inefficient, the offline method of calling up the trader and placing orders is also time consuming and results in not getting the best trading price. An online trading platform gives you real time prices and real time trading at the push of a button.

Online trading is about freedom and control

A lot of young first traders have spoken extensively about the merits of freedom and control while placing the order on electronic platforms. You are no longer at the mercy of the trader or the dealer, who would be anyways juggling scores of other clients and would have their own set of priorities. On the other hand, online trading gives you the freedom to execute from wherever you want and at any time during trading hours. In addition, this is about you having control and making trading decisions in your best interest. That is extremely important in online trading where you have a window of just about 4-5 hours on a trade.

You are on top of the audit trail of the trade

A trade (especially a day trade) has a certain process flow in you trading account. Firstly, your order is placed and then it goes to the order book. Once the trade is executed at the price of your choice, the trade goes into the trade book. As an intraday trader, it is essential that you are on top of the order trail so that you can take appropriate action. For example, if the order is still in the order book, it can be cancelled or modified. Once it goes into the trade book, it can only be reversed. Considering the short time frame, it is essential for you to be on top of the audit trail.

Making spot decisions based on charts and order book

One of the unique features of intraday trading is that decisions have to be made at short notice. All intraday decisions; including initiating trades or reversing trades, have to be done with speed. Such decisions are taken based on chart patterns, news flows or based on buying or selling concentration. Offline process cannot be used when speed is required as it would make the trade inefficient. Online trading allows you to get the trigger quickly and also immediately act upon it. That is why online trading fits perfectly for intraday traders.

Trade on the go with alerts

In electronic trading, you can set alerts so that you are alerted as soon as the trigger is hit. Now, you don’t have to worry about calling the dealer but just whip out your laptop or smart phone and complete the trade. It is as simple that! That is why; intraday trading and electronic platforms are almost made for each other.

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    This article claims RJio was given a "Backdoor Entry" into the 4G Based Voice Routing. The peculiar aspect is without the Voice License, Rjio would have been a mere ISP. With the license, it is now a holistic communications service provider, with ability to exponentially scale the bouquet of products. The events indicate it was meticulously planned way before the auctions because the auctions were clear on the agenda: 4G for internet only.

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Electronic Trading Platforms - An Effective Means of Day Trading

20 Feb 2020

In the last 8-10 years there has been a massive proliferation of electronic trading in India and that has been largely helped by better broadband connectivity and the launch of low cost trading. Be it trading over the internet or trading via mobile apps, the millennial traders and investors are increasingly opting for the electronic platform route. The bigger question is why do intraday traders exhibit a preference for online trading platforms like the PC, laptop and mobile app trading? There are 5 major reasons why online trading has been a big hit with intraday traders.

Online trading platforms give speed of execution

This is an advantage you fully appreciate only when you start trading. Imagine that you have to call up the dealer, place the order, wait for the confirmation and then go through the same ordeal when you reverse the position. Apart from being inefficient, the offline method of calling up the trader and placing orders is also time consuming and results in not getting the best trading price. An online trading platform gives you real time prices and real time trading at the push of a button.

Online trading is about freedom and control

A lot of young first traders have spoken extensively about the merits of freedom and control while placing the order on electronic platforms. You are no longer at the mercy of the trader or the dealer, who would be anyways juggling scores of other clients and would have their own set of priorities. On the other hand, online trading gives you the freedom to execute from wherever you want and at any time during trading hours. In addition, this is about you having control and making trading decisions in your best interest. That is extremely important in online trading where you have a window of just about 4-5 hours on a trade.

You are on top of the audit trail of the trade

A trade (especially a day trade) has a certain process flow in you trading account. Firstly, your order is placed and then it goes to the order book. Once the trade is executed at the price of your choice, the trade goes into the trade book. As an intraday trader, it is essential that you are on top of the order trail so that you can take appropriate action. For example, if the order is still in the order book, it can be cancelled or modified. Once it goes into the trade book, it can only be reversed. Considering the short time frame, it is essential for you to be on top of the audit trail.

Making spot decisions based on charts and order book

One of the unique features of intraday trading is that decisions have to be made at short notice. All intraday decisions; including initiating trades or reversing trades, have to be done with speed. Such decisions are taken based on chart patterns, news flows or based on buying or selling concentration. Offline process cannot be used when speed is required as it would make the trade inefficient. Online trading allows you to get the trigger quickly and also immediately act upon it. That is why online trading fits perfectly for intraday traders.

Trade on the go with alerts

In electronic trading, you can set alerts so that you are alerted as soon as the trigger is hit. Now, you don’t have to worry about calling the dealer but just whip out your laptop or smart phone and complete the trade. It is as simple that! That is why; intraday trading and electronic platforms are almost made for each other.