Advantages And Disadvantages Of Online Trading

4.1.1 Traders in BSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

As a Merchant or a Trader one would need many things such as supplies, food, and some type of clothing that is appropriate for the job. Some things one needs to be a Trader are supplies that other people will like. One will also need food for customers to trade, like crops and wheat. Supplies that is needed consists of wine, spices/herbs, cloth, fur, jewels, and glass. A thing that was very common to trade was beer and wine but they didn’t start trading it until the 1300s. As a Trader they normally wear a brown hat and shirt over a white long-sleeve shirt. As for pants they wear tight black leggings with old brown shoes. As one can see a Trader needs many certain things one will need. Traders sell goods to people who are willing to give

Also, 14% of the financial transactions online are equity trades and Edward Jones is missing out on all the volumes through this channels. The case talks about the “self-directed” investors and the “validators” and Edward Jones is losing out on the business from this class of customers by not allowing on line trading.

In Singapore, the ability to trade stocks and shares has become easily accessible due to online trading. Real-time information on stock prices is

Stock Exchange was formed trading equities auctions style. The market was in good health and around 1930 the traditional way stocks was to research them using fundamental-analysis, which analyzed a company’s health by examining their historical metrics. This changed in 1951, Harry Markowitz applied mathematical concepts to the market, which helped create algorithms that could calculate several different stocks simultaneously. By the early 1970s the markets started moving away from the traditional auctions to Electronic Communication Networks *. Algorithm trading presents series of problems, a few for each side of the playing field, so individuals are not safe playing with them or against them.

Rather than use full-service or discount brokers to buy and sell stocks, most traders use direct-access brokers. These brokers enable traders to trade stocks completely on their own—without dealing with an intermediary—by using an electronic trading platform called a direct-access trading system (DAT). Direct-access brokers typically offer traders a fee structure that makes frequent trading more economical than with a full-service or discount broker. They also typically provide a suite of features designed for traders, including real-time quotes and real-time market data.

The online shopping trend is becoming increasingly popular. People nowadays can get everything they need online, such as clothes, books, groceries, etc. Online shopping is a new type of technology trend that people are getting addicted to because it makes people’s life easier and saves them time. Shoppers can visit web stores from the comfort of their own home and shop while they are sitting in front of their computer. Many online shoppers do not have to waste time on shopping anymore.

The two trades that I choose to discuss about are the mid-term and long-term bond. First of all, in terms of CB2020, the trade starts by short selling the bond at t40 at a price of $101 after the news of CPI Index increase and Bank of Canada raises overnight rate. As a higher inflation rate or overnight rate would raise the nominal interest rate as well as the yield of bonds and thus lower the price of bonds. The bond is bought back at t160 at $98.5, which is around the one-year low of the bond.

Mostly everyone in today’s world has heard something about stocks. However, not a lot of people know what stocks are exactly, and what it is that they do. Many movies, such as Wolf of Wall Street, and Big Short, have been made to illustrate stock exchange market and give us a better picture on how that crazy lifestyle on Wall Street work. There are still many questions circling around that focus on how stocks are governed, and how they are regulated. To get a full understanding on just how stock exchange works, we will take it back to its origins, and slowly build our way up to getting a true understanding of their function.

When thinking about financial institutions and how I can implement what I had learned, the first topic that came to mind was stocks, bond, wall street. The thought that there is a lot of money that can be made there peaked my interest ergo, this book written by Peter Lynch was intriguing. Because the amount of knowledge I know about Wall Street is insignificant, the understandings and experience of Mr. Lynch have been useful in my endeavors to acknowledge the rules that make up the trading rooms and actions people make in order to stay ahead of the market. Though this book covers just one opinion of many in the end, his expertise will only benefit partially

According to Zaloom (2003), “Information technologies underpin traders’ daily practices of economic judgment by shaping the available informational resources” Yet, the transition from tradition face-to-face to electronic trading system continues at an extremely rapid rate. Accepting the change is vital but what is more is that we deeply understand benefits and fully aware of drawbacks of this shifts away. The first part of the essay highlights on the advantages of the electronic trading platform, while the second focus potential disadvantages. The evaluation is based primarily on four key premises: market accountability, price efficiency, information transparency and users’ experiences.

When I first began using Investopedia, I had no investment knowledge. I did not know how buy a stock, neither knew how to sell it or trade it. Not knowing how to read stock, I always thought if the numbers were negative, the company was doing bad, and if the numbers were positive, the company was doing good; I didn’t think long-term, but only looked at the short term. This was because I never had an investment portfolio which I tracked or managed and I had no exposure to the stock market. In high school, I only took science courses since I didn’t think I was interested in business. Thus, I did not care to read the business article or the flow of the stock, meaning that terminology used within the market sector was unfamiliar to me. I had to look up words such as bear market and basis point, which was a good learning point. As a beginner investor, I wasn’t the one who was called investment savvy. However, one of my group members was called investment savvy, because he had the experience with the stock simulation in high school. He was a great help as I began buying stocks. He taught me how to buy, sell, and trade stock. In addition, since I was not aware of the existence of stock exchanges, he also advised me to look at different stock exchange sites such as TSX. At first, I did not comprehend why that was essential. However, as the simulation kept going, I understood that in order to be a good investor, I had to become familiar with the stock exchange sites, reading the

Times have changed and so have all the investment and trading options as well. Online trading activities have taken the entire financial world by storm and it is evident by the sheer number of different online trading platforms and brokerage firms emerging on daily basis. With great many advantages and benefits offered to the investors, it is obvious why; millions of traders and investors are making beelines for this interesting, online format of trading, rather than the traditional ones.

According to statistics from Bank of Japan, HFT account for more than 50 percent in Tokyo Stock Exchange (TSE) in September 2012, which is the second largest sock exchange in Asia. Rather than attempting to restrict HFT in the market, Japan has made upgrades to its trading system “Arrowhead” to embrace HFT. “Arrowhead” brings millisecond-level speeds to both transactions and market-information distribution, achieves an order execution time of 5 milliseconds and distributes information in 3 milliseconds5. It also distributes all order information on all issues in real time. High frequency traders could get benefit from this real-time access to all order and quote data. In addition, Japan stock market is the

Sharekhan is one of the top retail brokerage houses in India with a strong online trading platform. The company provides equity based products (research, equities, derivatives, depository, margin funding, etc.). It has one of the largest networks in the country with 704 share shops in 280 cities and India’s premier online trading portal www.sharekhan.com. With their research expertise, customer commitment and superior technology, they provide investors with end-to-end solutions in investments. They provide trade execution services through multiple channels - an Internet platform, telephone and retail outlets.