Understanding Online Stock Trading Using a Trading Software Program

In Business Skills, Investment Skills
Understanding Online Stock Trading Software

The first step of understanding stock transactions with online trading software. What does online stock trading software look like? What are the advantages of stock trading using an online app? What are common features in a stock online stock trading software program? To find out the answers to those common questions, let’s first understand the information from the following points.

Recognize the Online Stock Trading Facilities

Online stock trading is a system (a software program or application) that allows stock traders or investors to carry out stock transaction activities through the internet. So, buying and selling stocks on the market can be done directly through your computer or mobile device. This system is almost the same as when you are doing internet banking transactions.

Online stock trading software from existing securities are connected to the system of a stock exchange automated trading system (ATS) center. An ATS is itself is a securities trading system applicable in an Exchange for automated trading using a computer.

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Generally, there are two types of online stock trading systems;

An online trading system that can be installed first on a device like a PC or mobile phone.
An online stock trading system that can be accessed by visiting the website.

The Advantages of Online Stock Trading Trading Using Software

If you do stock transactions using an online trading application will greatly facilitate you in making stock transactions. So, this way doesn’t rely on a broker. Besides, the stock trading fee charged by the securities is also not as big stock trading through a broker.

In addition, an online trading application also provides price information facility. It contains information about daily stock research, stock news, data to perform technical and fundamental analysis and facilities to view stock portfolio.

The difference is obvious if we compare it to conventional transactions. In conventional stock transactions, investors order shares via a phone call, while investors who transact using an online trading application only need to place orders through the internet.

The Comparison Table of Online Stock Trading and Conventional Stock Transaction Differences

 Online Stock TradingConventional Stock Trading
1.Stock transactions done using an online application.Stock transactions done through a broker.
2.The transactions can be seen in a real time.Investors cannot see the transactions in real time.
3.Traders by stocks online directly without a broker.Investors buy stock through a broker.
4.Low stock trading fee.High cost broker fee.
5.Investors must connect to the internet.Investors must use at least a telephone.
6.Complete stocks data.Less data.

Online Stock Trading Securities

Every security has its own trading software. So, you can do stock transactions using the online trading service from anywhere as long as there is an available internet network. But before you can do online stock transactions through one of the best online stock trading software programs, you need to have a stock account in order to obtain Login ID. Then, know some features of an online stock trading.

Online Stock Trading Features

Generally, the best brokers those provide online trading software facilitate special features which are don’t exist in online trading software. The following are the special online trading features which can be the advantages of a online trading.

1. Auto Trading Feature

Certainly, all online trading brokers provide to buy and sell the stock facility. But some brokers may also provide a special feature that is very helpful for traders or investors, namely auto trading feature. Auto trading is a system that will automatically buy or sell stocks based on the orders.

With an auto trading feature, an investor can set a buy price and a selling price when a stock has reached a certain price. To know more about auto trading feature learn stock trading cut loss. So, are no longer need to observe in front of the software interface anymore. Or don’t need to call the broker continuously. Investors can put a buy and sell price in accordance with their respective trading plan and projection.

2. Stock Price Chart and Its Indicators

The stock price chart is a very important feature for investors and traders in analyzing stocks. Stock charts are important elements for technical analysis, especially when stock charts are equipped with a variety of indicators needed.

Complete indicators in a stock trading application are really helpful. Each investor has a different trading character which of course each of them also has a trading method that best suits each of them.

An online trading application with complete indicators as a technical analysis tool can accommodate your trading needs in determining a stock. The good online trading software has indicators like Moving Average, Bollinger’s Band, MACD, Volume, Fibonacci Retracement, Pivot Point, Stochastic, OBV, RSI, and may also have other technical analysis indicators.

Recommended reading: Online Stock Trading

3. Issuers’ Financial Statements, and Its Ratios News

Investors also need some facilities that can facilitate the fundamental stock analysis to determine whether or not a company is still financially sound. By facilitating investors news and financial reports features, investors can also assess the management of the company and can make a decision to buy or sell its shares. Fundamental indicators include EPS, PER, BV, PBV, ROA, ROE, DER, NPM, etc. Those indicators should normally be calculated manually from the financial statements. Given this information automatically, it will be very helpful and time-saving in doing fundamental analysis of stock trading.

4. Other Trading Analysis

Much important stock information can be seen in an online trading software program. There are many useful things you can use as a benchmark trading analysis, such as Stock Ranking, Foreign Flow, Broker Sum, Seasonality, and corporate actions information.

The corporate actions information about corporate such as Stock Split, Dividend, and Right Issue will also affect the agility of investors in decision making. The completeness of its data and the attractive view can also be a consideration to choose a good online trading software program.

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