Five Trading Advantages Pursuant To The Growth Of Internet And Technology
Pursuant to the robust development of technology and internet, almost all our transactions are made online. E-commerce has gained a high importance in the market now. Even the stock exchanges operate online for the easy convenience of traders. The advancement in technology has transformed the entire financial market. Below are the five trading advantages in the financial market pursuant to the adverse growth of the internet and the technology.
1) Flexible Trading: Trading online allows the investor to trade anywhere at any time. An investor needs a strong internet connection to trade efficiently. Trading can be made possible even using your smartphones. Investors can overview and track the market 24*7 using their smartphone and trade effectively to earn spectacular returns.
2) Increased Transparency: As all the trade details are made online and are updated now and then in the exchange portals, traders/investors can view the accurate information and execute trade accordingly. Before trading was made online, the exchanges lacked transparency, and the investors execute a trade based on the information provided by stockbrokers, agents, custodians etc.
3) Opportunities: Since online trading is flexible and easily accessible, a large group of investors actively trade in the stock market. The introduction of online trading has created job opportunities for many traders and investors. They can trade in different financial instruments such as stock, derivates, bonds etc.
4) Faster execution: The internet has transformed the entire market right from the back office operations to the front end desk in the exchanges. The transactions are executed faster by the investor/trader by one “single click”. Traders continuously follow the market psychology, price fluctuation of security via online and execute trade immediately when the market is favorable. The speed of the transaction is also one factor that changed the financial market pursuant to the development of the internet.
5) Automated software: We have trading robots, trading software that is programmed to connect with the particular exchange, as preferred by traders, to track the market movements and in turn guide the investors/traders to execute accordingly. Be it a beginner or an advanced trader, trading bot act as a main source of information as they provide market information, forecast the future price of a particular stock, generate trade history, perform trend analysis, etc. Indeed, they execute the trade on behalf of the traders.
The advantages brought by the technology and internet in the financial market are manifold and listing them would be endless. The above are the major transformation in the financial sector pursuant to the innovation of technology and the internet. However, there are pitfalls to the same such as fraud, scam etc. Investors have to do an intense study of the market before trading online.