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by Answerbag Staff on December 29th, 2009

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What is trading online?

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Answers. 2 helpful answers below.

  • by Geri Terzo on December 29th, 2009

    Answerbag Experts

    Great Answer

    Professionally Researched. (What's this?)

    Trading online represents a fast way of buying and selling stocks. It can be done by individual investors or institutions. Most brokerage firms, which facilitate trades on behalf of investors, offer online services.

    Identification

    Trading online begins with opening a brokerage account. Once an investor subscribes to a brokerage service, he can begin making buy and sell orders on stocks and mutual funds at will. Stocks can be held for long periods of time or investors can trade on a more frequent basis, even daily.

    Features

    Most brokerage websites offer trading tools and research to supplement the trading products. For instance, by entering the trading symbol for a stock, a chart illustrating past performance vs. a stock market index can appear in moments.

    Benefits

    A benefit of trading online is speed. This is because stock prices can rise and fall in seconds. By placing an electronic trade order online, an investor is likely to capture the current price or something extremely close to it. When orders are facilitated over the telephone, an alternative to online trading, time and money can be lost.

    Considerations

    Consider that a safe Internet network is vital for investors who intend to trade stocks online. Personal information must be provided in order to open a brokerage account and trade stocks, details such as a bank account and Social Security number. Ensure that a computer is protected with the appropriate software to create a safe network and guard against security breaches.

    Technology

    In addition to trading via a computer, investors can download software applications and trade stocks through certain hand-held wireless devices. A software application from online brokerage E*Trade, for instance, allows investors to trade stocks via a mobile device including an iPhone, according to The New York Times.

    Source:

    New York Times: A Convenient Way To Track Your Struggling Investments

    More Information:

    The Motley Fool: Is Online Trading Secure

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  • by sunitasethi on December 22nd, 2010

    sunitasethi

    Online trading refers to the buying and selling of equities, commodities, derivatives, mutual funds and other instruments of investment over the Internet. Online trading is done using software provided by a broker. For online trading, investors need:

    1. A Demat account where they can hold their shares.
    2. An online trading account.
    3. A web-enabled bank account for online transactions.

    Many brokerage firms provide online trading services. One that comes to mind is GEPL, which offers investors three versions of its online trading platform as well as the opportunity to maintain a Demat account with them.

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