Online Trading has recently evolved as one of the fastest and efficient ways to place and execute orders. It typically uses a custom software that transmits orders through high-speed ISDN or faster lines.
Online Trading – two things to know
Investors should clearly understand the difference between online trading on electronic exchanges and online orders transmission.
- Online Trading on Electronic Exchanges:
Typical online trading takes place on electronic exchanges. The exchange itself is an electronic system where participants are directly connected to the central system of the electronic exchange. Participants use faster internet connections (e.g. ISDN) to log onto the electronic exchange and they execute orders on their computer terminals.
We have a versatile online trading software which connects directly with electronic exchanges, and orders are placed instantly bringing in ‘real-time’ fills as you see prices on the screen. Currently, both E-Mini S&P 500 and E-Mini Nasdaq 100 stock index futures are traded online on our computer terminals.
- Online Orders Transmission:
On the other hand, online orders transmission is only an enhancement of the already existing telephone-assisted order placing. For instance, commodity futures like gold or crude oil are not traded on electronic exchanges, instead open outcry system is used at the NYMEX exchange in New York. When you trade gold online, you are only sending an order online to the exchange floor. This order will be instantly picked up by floor brokers and will be executed in the floor. In other words, online orders transmission considerably reduces the delay in placing orders, bringing in faster order executions.
Currently, most of our orders are placed online on the exchange floors. Telephone back up is also provided for tracking orders in case of any unforeseen network problems.
Would you like to know more about our Online Trading Facilities? Call our Research Department.
