Professional trading platform in India
What is a professional trading platform?
Investments and trading have long been part of the life of many people in all developed countries of the world, and India is no exception! For some of them it has become a hobby and for others it has become a profession. With the development of technology and the emergence of the Internet, electronic trading has developed and there is an excellent opportunity to analyse the market and place trading orders directly on the exchange market through professional platforms provided by the broker.
Now, such online trading is one of the most popular ways to invest and multiply your funds.
Now let's see together how to choose a really good, reliable and convenient electronic trading platform in India. If you are a novice trader, and you're struggling to grasp some terms, start by saying that an online trading platform is a special software for your computer or smartphone which enables the interaction between the trader and the broker.
You should be aware that some platforms do not require installation on your computer because they work via a web browser, but most platforms require installation on the device (PC), from which you will be trading. The best trading platforms offer a wide range of options for individual interface customization and full-fledged technical analysis, with the widest possible range of charting tools, technical indicators and ready-made strategy templates.
You will be able to promptly receive and analyse all information before making a trade. An electronic trading platform is essentially like a kind of personal office, where you can see your account status, trading history, portfolio status, etc. Very important is that you can set up stop-loss and take-profit orders online, in order to hedge risks.
The main objective parameters when choosing a platform:
- Speed of the program- nothing should affect the quality and quantity of your trades. If the platform is slow, you should not use it.
- Functionality - this includes the number of analytical tools such as charts, technical indicators, timeframes, etc. The ability to open several windows simultaneously with quotes, to set up automatic trading, to insert your own indicator, etc.
- User-friendly interface - it must be simple and understandable. And the ability to customize it will make your trading comfortable.
- Privacy and security- these parameters are always important when it comes to money and personal details. The platform must be something you trust.
- Mobility - the ability to install on your mobile device and compatibility with leading operating systems.
A mobile app is preferred by seasoned traders because it provides access to your trading account from your phone.
This is important when you want to check information or urgently need to open an order. And you will not be affected by computer crashes or, for example, you can take a trip with your phone at your fingertips. Now we will talk about platforms adapted to specific markets such as stocks, currencies, options, etc.
An online stock trading platform
Most of the best stock trading platforms allow you to trade assets listed on the US, European and London stock exchanges. Stock trading is the most popular type of investment in the stock market. You will need to learn how to properly analyse the companies on whose shares you plan to make money. To do this, you'll need both fundamental and technical analysis.
By buying shares over the long term, you will have the opportunity to assemble an investment portfolio of shares of different companies. Thus, you diversify your investments and protect yourself from risks. You can also receive dividends. If you want to earn fast, you can buy CFDs, but you will not receive dividends, and you will not own any shares. CFDs simply allow you to speculate on changes in the price of an asset without buying it. You predict whether the price will rise or fall. If the market changes exactly as you predicted, the profits are yours. However, if it goes the other way, you can face much bigger losses than with conventional instruments. Trading CFDs allows you to use leverage, and you can buy or sell much more than what you have in your account.
So on the platform you can see a full list of stocks, select the one you want, specify the volume you want to buy, monitor the price and make different transactions.
A platform for online forex trading
Forex trading platforms are used for investing in the international foreign exchange markets. Such terminals are an important part of solving tasks such as market analysis, strategy development, transaction execution, etc. A trading platform must be able to optimize the technical tools of the software such as charts, indicators etc.
Forex is an exchange for speculating with currencies in order to profit from the difference between the buying and selling price. The main trading instruments are currencies involving the American dollar, USD. There are many other currencies, but the most volatile are the USD currencies.
Let us look at an example. EUR / USD.
The base currency is the Eurо, the quoted currency is the US dollar. Accordingly, you will buy and sell EUR for USD. This means that if the base currency becomes more expensive, the quoted currency becomes cheaper, and vice versa. If you correctly predict that the quoted currency will rise, you can open a "buy" position on it. If you are sure it will fall, you can "sell" it.
Forex is available to speculate around the clock, but is not available on weekends. This should be taken into account to avoid leaving open trades on Saturday and Sunday, otherwise you could end up with a loss on Monday.
A platform for online options trading
Like stocks or bonds, an option is a security. Options remain the most flexible trading instrument, with a low entry threshold. Even with a small deposit, you can get started comfortably.
An option is a contract that trades not the asset itself, but the right (not the obligation) to pre-emptively sell or buy the asset.
In simple terms, this is the opportunity to buy (Call) or sell (Put) the underlying asset at a price you select. You get the opportunity to transact with the asset later, at a predetermined price. This will be the purchase price of the option and is called (strike). By working with options, you cover your risks, you get a fixed income, and you can profit when the market is rising or falling.
Lately, there are more and more traders who prefer binary options. It's a simple form of online trading that allows you to make quick profits on changes in the price of securities and currencies. They only have two results - to win or to lose, hence their name. If a trader predicts a rise in value and at the end of the time frame the value is higher, the trader will make money, if it is cheaper he will lose money.
Platform for online commodity trading
Oil, gas, gold, grain, coffee, cotton and many more are all commodities. On the platform, you can trade them using ETFs and invest in several assets, using a single trade. It is a ready-made set of commodity stocks and according to experienced traders, commodity funds are highly liquid, cheap and easily accessible. Even if you don't have a lot of money, it is still possible to access a wide range of commodities.
Another fairly simple way to trade is Contract for Difference (CFD). This financial instrument allows you to trade any of the commodities on offer without actually buying them, earning only on the price difference. You may be interested in buying shares of companies that are directly linked to a particular commodity. It is logical that the income of such companies depends on the price of raw materials they sell, and if the price goes up, the income of the company and consequently the price of its shares will increase.
Platform for online ETF trading
If you want to get the most out of your investment, then ETFs are ideal. The fact is that exchange-traded funds consist of several assets (stocks, commodities, securities, etc.) that are bought and sold as one stock. Such funds assemble a diversified portfolio of assets and sell a share in that portfolio. When you buy a share in an ETF, you are investing in an entire industry segment at once, all for little money. ETFs are priced and traded on an ongoing basis throughout the trading day. This makes them very flexible, allowing investors to buy or sell without delay.
High liquidity, low cost, ease of management, and a wide range of tradable funds make ETFs an attractive tool for investors.
Online cryptocurrency trading
The principle of cryptocurrency trading is very similar to stock trading or forex trading. There are two different approaches you can use to invest in digital currency - traditional holding and CFD trading. In the former, you buy the currency and hold it until the price rises, and you want to sell it. Until then, you keep the asset in your personal wallet.
In the second case, the CFD allows you to trade an asset by paying the difference in price at the moment the contract is opened and closed. The idea behind using such a contract is that you only speculate on the value of the coins without owning them. And don't forget about the possibility of using leverage.
Graphical analysis is widely used to trade digital currency, as elsewhere. This kind of analysis can tell you a lot about where the price is headed in the future.
Most traders prefer to invest in the top ten currencies. (Bitcoin, Ethereum, Monero, etc.) Popular currencies are easy to buy, sell or exchange and are fairly reliable.
When choosing a cryptocurrency trading platform, you need to consider several factors before signing up:
- The types of cryptocurrencies available for trading.
- The ability to trade through CFD.
- Whether leverage is supported.
- Types of payment methods available.
Online index trading
Most of the indices traded on the market are country or sector indices. It can be said to be a kind of 'basket' of stocks from different companies. Which reduces risk considerably due to diversification: the fund has a lot of securities, bankruptcy of even a few companies will not lead to significant losses. If the average share price of the companies that make up the index goes up, the index will go up with them. It is the other way round. Indices cannot be directly traded. They are representations of a stock's total price, not products in their own right. Indices can be traded with derivatives, like CFD. This is the most balanced way of trading. There are many ETFs based on indices. This allows investors to buy shares in an ETF that invests in companies in a particular index.
Index ETFs, like indices themselves, are popular for their convenience because they allow you to invest immediately in a sector or economy, for example.
How to start using a professional trading platform in India?
Well, we've taken a look at what a professional trading platform should be, we've looked at market-specific electronic trading platforms, and now it's time to take advantage of all the benefits they offer. To use a professional trading platform in India, you need to go through a simple registration process.
You will be able to do it in a few minutes without any problems. Enter your details requested by the system, your email address, a password known only to you and click on the "Register" button in the registration form. Once you have filled in and submitted the form, you will receive an email to activate your account.
Once you have registered, all modern platforms allow you to use a demo account, which is usually free with an unlimited time limit.
On this account, you will automatically receive a virtual amount of money, which you will need to make test trades. In addition, when you use the dummy amount in full, you can extend it as many times as you want until you feel confident enough to fund your real account and start real trading.
Do not ignore the opportunity to learn by using a demo account! For beginners, it's a must to gain experience and test the platform. Learn to develop your strategies and learn how to open trades efficiently, without risking your money.
When you sign up for a live account, you will have to deposit the minimum amount requested by the platform. Only after that can you start making real trades.
The platforms offer you a list of ways to fund your account, usually by card payments, bank transfers and some other electronic payment services.
It is very important that you are aware of the charges before you deposit, and then choose your payment method, currency type and enter the amount of your deposit.
Take the time to find enough information about all the available brokerage firms that provide services online in India. Read user reviews, consider the company's image as well as the usability of the platform itself. Note that the best brokerage platforms offer free training, a free trial demo account, and low initial investment amounts and technical support is available 24 hours a day, 7 days a week to help you.
Remember that Internet trading is sometimes subject to quite strict economic and political laws and principles, and ignoring them can cause you considerable losses.
Self-education about investing will help you avoid the risks. And a positive attitude will give you confidence in your endeavours. Good luck!