Online trading is basically the act of buying and selling financial products through an online trading platform. These platforms are normally provided by internet based brokers and are available to every single person who wishes to try to make money from the market.
Traditionally, investors and traders have to call their brokerage firms to make a trade for them. If he wanted to purchase 50 shares of Intel, he would call his broker with a buy order request. The investment representative must also confirm the commission costs for making the trade. When all has been established, the broker would place the trade in the system which is linked to trading floors and exchanges, such as the New York Stock Exchange (NYSE) or the NASDAQ. The online trading platforms serve as a hub with multiple tools for the investor or trader. The investor can place buy and sell orders; place market, limit, stop, stop-loss, and stop-limit orders; check the status of an order; view real-time stock quotes; read news on companies; view the list of securities currently held through the dashboard; An investor can also access his or her investment statements, confirmation statements, and investment tax forms using the online system.