How Online Trading is done?

Online trading is the act of buying/selling orders for financial securities using electronic interface such as internet. The use of online trading has dramatically increased due to the availability of high speed computers and internet connections. A person who has enough money to open an account and a good investment experience can easily do it. This article is an introduction to how online trading is done.

Choose a broker: Before starting trading stocks online you need a broker. The broker will execute the trade and store the money and stock in an account.

Enough money to open account: You should have sufficient money, apart from investment amount, to open an account.

Trading Experience: Least expensive brokers don’t offer much help in broker-assisted trades while some might provide market analysis. Trader should be well experience about trade give and takes.

Make Trades: After opening an account you can buy or sell stocks and choose a market order. But you need a real-time trade stock quote to confirm the price of stock. Get this information from sites or ask the broker to provide you with real-time quotes.

Online Trading is not instantaneous: Trades online is not immediate, even if you're placing a market order. It takes time to find a buyer or seller and to electronically process the trade. Trades execute only when the markets are open.