Electronic Trading Platform in India
What is an electronic trading platform?
Investing and earning passive income is becoming a modern trend in the world. The number of transactions made by individuals is growing rapidly on stock exchanges. But there are many myths that an investor is someone with a lot of capital. However, by choosing the right broker, you can start investing with small amounts, gradually multiplying the returns and increasing the amount of your own investment.
A stockbroker is the intermediary that connects you to the exchange to make a deal happen. The professional services of a stockbroker help beginners and experienced investors alike.
The use of brokerage platforms is becoming increasingly popular, it is still the same intermediary, only now it is electronic, and you do not have to travel anywhere to make a deal. Using the best technology to buy and sell trading assets is crucial. Choosing a good platform is an important part of a trader's job, and there are some details to keep in mind.
All trading platforms are special programs designed to execute trades (buy or sell currencies, stocks or futures) in the market by using a computer to carry out analysis, use charts and other tools to manage your accounts.
That is why it is so important to choose the right platform: the capabilities of the system are also directly related to the user's own needs and preferences.
When trying to make a profit on the exchange, a trader a priori gets into an environment of uncertainty and often makes difficult decisions. So the instability of the trading platform should not be added to this situation.
The platform should be licensed, and experts advise to consider a platform that is supervised by regulators.
You don't want to think about the technical side of things when you're immersed in trading, which is why you should not skimp on your trading software.
In cases of quality platforms, there are hardly any problems with the technical side of trading. Such software runs smoothly and with its high speed of execution, advanced hotkeys and plug-ins to set up an automated process, you are at an advantage over other traders. If technical difficulties do arise, there is a 24-hour hotline service that will solve them.
Once you've established that the platform is safe and secure, you need to think about the opportunities available to traders and investors. Everyone will want to have everything they need at their fingertips. It would be great if the platform offered everything in one place. Here's what to look out for when choosing.
- Getting information. First and foremost, it is real-time quotes - the value of the asset at the moment online. The quotes are broadcast by the broker, which receives them from its partners. Also in the platform you can find the archive of quotes, get the news, etc.
- Market analysis. The platform has basic technical and graphical analysis tools for estimating the market's status at the moment and in previous periods.
- Deal Management. Stop Loss and Take Profit are the types of protective orders, which are set for automatic closing of transactions. Stop Loss limits possible trader's losses, Take Profit helps to fix profit when it reaches necessary level.
- Account management. Opening any number of Demo and Real accounts, switching between them during trading and analysis.
- Mobile application. Installed on Android and iOS. It is convenient when you are on the road, on holiday. Allows you to react on market changes fast and in time.
- Intuitive interface. Comfort is important in trading. Your platform must not make you tired of your eyes, it must have laconic design and all basic functions must be "at your fingertips". And all the functions are consecutive, and you don't need to worry about what to do next.
Ability to analyse
Any strategy should be based on the adequate analysis of current positions and factors, which are reflected in the price of a traded asset. And today's online platforms are ready to offer you not only the trading terminal, but also the ability to analyse the value of the asset and to develop an action plan based on it. There are 2 main types of analysis.
- The first is a fundamental or basic analysis. The name speaks for itself. It studies the preconditions and factors, which influence the price of the chosen asset. Fundamental analysis is more in-depth. It takes into account the effect of social, political, governmental and economic factors on the price. This is presented on the electronic trading platform in the form of an economic calendar and news.
- Technical analysis is a way of predicting future value using charts and indicators. It is based on the analysis of price time series, most often charts with different timeframes. The main tools of such analysis are charts and various indicators. On the platform you will find many tools to suit all tastes.
Now that you know what an electronic trading platform is, you can concentrate on choosing the asset you want to trade.
Types of assets on an electronic trading platform
Some platforms may offer you a single type of asset to trade. However, you should choose sites where you can find the best option for your trading asset. You can also invest in different assets for different lengths of time. This is called diversification.
Diversification is an investment strategy that helps to increase returns and reduce risk.
The risk for an investor is either the loss of return on the investment or the loss of the entire investment itself. The purpose of diversification is to choose such investment options that make the risk and profitability acceptable to an investor.
Electronic platform for stock trading
Stocks are an interesting, effective and accessible tool in the stock market. It is of double interest to private investors: on the one hand, with the help of a broker you can trade shares and receive income from buying and selling them and, on the other hand, they pay dividends on shares, which can sometimes be more profitable than a bank deposit.
You will have access to shares of global companies.
Electronic platform for forex trading
Currency pairs are the ratio of the value of one currency to the nominal value of another currency. The currency which comes first in a currency pair is called the base currency. The second currency which makes up the currency pair, i.e. the one to the right, is called the quoted currency. When people talk about forex trading, they are buying and selling currencies with the expectation of making a profit due to the change of their value in the market.
Electronic platform for options trading
An option is a contract between the buyer and the seller; the price and the expiration date of the contract are agreed upon.
In other words, it is an exchange transaction with the right to buy (call) or sell (put) an underlying asset at a fixed price.
Seller of option receives fixed amount and gives commitment to make future transaction with buyer - if buyer decides to exercise his right.
A particular type that is gaining more, and more, admirers is the binary option. It is called "binary" because the transaction has only two possible outcomes: win or lose. This means that the asset on which the option is purchased has to reach a certain price or exchange rate level for the trader to make his profit. Or on the contrary, the trader will lose all his/her investment or only receive a consolation reward if the forecast is wrong.
Electronic platform for commodities trading
Simply put, commodities are basic commodities or materials of the same kind that can be purchased from several producers. Agricultural products, metals and energy products are all traded on major commodity markets.
A broker will offer you the most popular commodities and trading is usually done with CFDs. This means that you do not physically buy the asset, you do not have to think about where to store the purchased goods and how to sell them, you earn on the price difference.
Electronic platform for ETF trading
Every investor is familiar with the principle of diversifying assets. Spreading your capital across different instruments is a direct way to reduce investment risk. Even if profitability of one instrument falls, it does not lead an investor to an overall financial disaster. An ETF is a financial asset created by several large investment companies to diversify portfolios. Then an ETF is already a diversified portfolio; by buying it, you are buying part of that portfolio.
Buying one share in an ETF is equivalent to buying ten, hundreds, or even thousands of shares of the largest companies that belong to a particular industry or country.
Electronic platform for cryptocurrency trading
The term "cryptocurrency" is derived from two words: cryptography and currency, meaning a secure electronic currency based on the encryption principles of mathematical algorithms.
In simple terms, what a cryptocurrency is defined as follows: it is an encrypted, decentralized unit of currency that can be freely transferred between network participants and can also be used to pay for various goods and services.
A trader can make money from a cryptocurrency by reselling it, i.e., speculating on its value.
Electronic platform for indices trading
Exchange-traded indices are trading tools that include a group of exchange-traded shares from a certain segment of the stock market and create an average value for them. Indices show market movements not only in certain industry segments, but also in the economy as a whole.
So, these are the main assets that traders and investors can operate with. Of course, each of the instruments requires detailed study and diving into the nuances. But at the initial stage, you can choose one or another asset and try your hand at first on a demo account. The broker gives such an opportunity. And it is a great chance, which you should use at the initial stage.
How to start using an electronic trading platform in India?
If you are a newcomer looking to work on an e-commerce platform in India, this article may help you. Online trading is becoming increasingly popular in India and demand is creating supply, with many brokers offering their services today. Once you have decided on a reliable and functional platform, you will need to register with it. This simple step will give you access to the benefits of the trading platform. You do not have to invest your capital straight away, but you can get started with a virtual account.
Demo accounts allow you to trade in a real environment, without risking your real money. You can use them to get to know and learn how to use various functions of the trading platform, using virtual money.
The system will automatically credit the demo account; you do not have to do anything to get it. You can work with these funds as you wish, tracking your results and strategizing for the future. Be sure to do some research into how the market works and its dynamics until you actually start investing cash.
Once you get comfortable with the platform and have experience in analysing and interpreting news and trading indicators, it could mean you're ready to open a real brokerage account.
To register a brokerage account, simply enter the additional personal details that the system asks for and make a deposit into your account. Follow your broker's instructions, and you will soon be a fully fledged trader.
If necessary, you will be given leverage. This is the ratio of your own funds to borrowed funds, respectively, trades exceeding the amount of money you currently have on your balance.
The last point to look out for when it comes to the best choice of electronic trading platform in India is to make sure that the information offered to you is presented very clearly and easy to understand. It should be presented in a way that everyone can understand. Once you find a platform that meets all these requirements, you will be on your way to building a strong investment and generating good returns.