Internet Trading CSE
Internet
Trading
Internet trading does not come with expert advice normally. But it does come with live market updates so that you can buy stocks and keep track of your purchases online. You can become an expert yourself within a short period of time. But you must be careful not to make careless mistakes. In internet trading there is always a winner and a loser. But even the loser can become a winner if he waits patiently till the value of stock increases.
What is internet trading?
We live in
technological era that allows us to do many things from home through the internet.
Investors now have web access to market data, company information, and
educational materials which greatly reduce inter mediation issues in investing.
The online trading investor gains the facilities and saves time with direct access to Internet trading options and will have access to 24
hour access to information regarding the stock market information.
How does Internet trading work?
Internet based
trading is an order forwarding and executing system providing trading in shares
at the Stock exchange. To be engaged in Internet
Trading you will have to do
the following.
· Sign up an agreement with a
Stockbroker.
· The stockbroker gives you a
Username and password, through which you can access the order book and
place orders through your registered broker.
· You can set up a portfolio so
that the value of your portfolio can be updated daily.
· Once you feed the order, the
order goes to the brokers trading server and from the broker to The Stock
exchange.
· When the trade is executed, the
confirmation along with the order number, the trade number and time of
execution is sent to you.
You will have the
facility to trade online as and when you want, if you have an internet connection. During times of high market
activity, when it is difficult to speak to your financial adviser or the broker
firm, you will be able to place your orders without difficulty. It will also
allow you to have direct facilities for trading, thereby minimizing
client-broker disputes.
Is trading through internet safe?
Online
stockbrokers implement security, technology, and fraud prevention methods to
provide protection for all users of the online trading facilities. When you open an online trading
account, the broker company will give you a secured Username and password.
How to open an online trading account?
To open an online trading account the stockbroker websites
provide the necessary forms usually to be downloaded on their websites. It will
be necessary to fill the Stock Exchange account opening forms. Next the
relevant account opening forms of the Stockbrokers. It will be necessary to
provide proof of your identity; proof of your billing address so that you can
receive documents and checks sent by the brokers. With regards to deposit
requirements for online trading, some firms may request that you deposit a
minimum amount in the form of cash to trade using their Internet trading
platform. This is done to reduce the credit risk of online transactions. Some
stockbrokers may allow limited credit to investors, but it must be settled
within three working days. Similarly when you sell your shares, the stockbroker
will send a check to that value within three working days.
Trading through the internet is not costly. All stockbrokers who provide online trading facilities charge the same transaction fees as brokers who do not offer online trading facilities. Presently online brokers do not charge additional fees.
Online trading does not require any special expertise or any financials skills. However just like making any investment decision, you should make an informed investment decision based on company’s performances whether investing online or offline.
Online
trading also provides many
benefits to retail investors. The internet has brought to the individual
investors what was the absolute authority of large institutional investors and
high value investors. Online trading offers direct access to trading and can
have access to market information any time of the day. It also allows
stockbroker research on listed companies.Today few of the most wealthiest people have earned their wealth from stock trading.
Tags: internet
trading, buys online, trade online, online stock, online trading, buy stocks,
trading options
Posted by: Donald Jayasundera (Regisistred Pharmacist)
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