Trading platform software for real time trading

Trading is one of the most exciting activities on this planet. Once you become a successful trader, you can live and work anywhere in the world, be independent of routine and answer to no one. But despite all the outward attraction, few beginners realise how much work and discipline the stock market demands.

Learning to trade takes time, effort, discipline and money. However, trading is a fascinating and addictive activity, which can be very rewarding. Trading promises a lifestyle that many people dream of, but you will have to work hard and persistently to succeed.

What is trading platform software? 

Traders connect with brokers through trading platforms software. A forex trading platform is nothing but software that enables you to interactively in the international forex market and make different trades. Brokerages may also refer to platforms as trading clients or trading terminals, but they all mean the same to end-users. 

A trading platform software is the main and, in fact, the only tool with which a trader can somehow influence the market. Therefore, its user-friendly and straightforward interface will determine the speed of opening and executing trades, which is crucial in such trading types as scalping and intraday trading.

Besides, if the terminal is intuitive and straightforward, you will master it much faster, and, therefore, you will be able to start trading successfully sooner.

The main differences between the trading platforms software 

Choosing the right trading platform software for your purposes also affects how fast and well you can achieve your objectives. 

Trading platforms differ in the set of features offered, the interface, and the technical characteristics, the main ones being the following:

• The way of installation of the client terminal:

1. Is installed on a personal computer;

2. Uses web-interface (using a web-browser application);

3. Is installed on a mobile device, gadget;

4. Graphical display of obtained quotes;

5. The technical analysis of data using a comprehensive set of indicators;

6. Convenient and fast interface for placing orders;

7. Ability to trade on exchanges or simultaneously with multiple liquidity providers;

8. Program trading - the ability to make automatic trades following their strategies;

9. Additional services - account management, a news feed, signal generation.

So what are the main functions of a trading platform software? 

Trading platforms serve three primary purposes:

• Market analysis.

The components of trading platforms responsible for market analysis allow you to view and adjust price charts and display quotes. Two types are distinguished here:

Delayed market data - where quotes, charts and other market information are only updated after the end of a trading session, or with a delay of some time, say 20 minutes. Such trading platforms are suitable for position traders and swing traders, who trade medium or long term.

Real Time Market Data - where all market data is updated as it becomes available, without delays. Such real time trading platforms are essential for short-term traders, i.e. day traders and some swing traders.

• Testing.

The next component of trading platforms software is the possibility of backtesting, i.e. testing strategies on historical data. Not so long ago, this was a relatively advanced feature of trading platforms. Today, every trader can backtest, optimise a trading strategy and more. This tool can seriously help improve your ability to test trading systems.

• Order execution.

Finally, trading platforms have an interface for order execution. In addition, many platforms support different levels of automated trading, from conditional commands to fully automated strategies.

What can I trade on trading platforms software in India? 

So, if you choose short-term trading, then CFD or contract for difference trading will suit you.

A contract for difference (CFD) is a popular type of derivative financial instrument or derivative. Derivatives are contracts with a limited expiry date that are a 'derivative' of the underlying asset and correspond in full to its real-time value.

The CFD stands for 'Contracts for Difference'. CFDs are a popular instrument for trading stocks, indices, commodities, currencies and cryptocurrencies. Their main feature is that there is no need to own the underlying asset directly. Let us now take a closer look at the process of trading CFDs.

CFDs allow full trading of various financial instruments simultaneously - stocks, indices, commodities, forex currencies and digital currencies. You do not have to buy the asset itself, but you can fully participate in trading and make short-term profits on the rise or fall of the instrument.

Formally, a CFD is a contract between the broker and the trader. The essence of a CFD is the exchange of the difference in the value of the underlying asset between the contract's initial and final price.

CFD trading - the basics  

CFDs allow you to use only a fraction of the amount needed to open a trade. This method is called margin trading or leveraged trading. This method allows traders to work in more prominent positions with little capital. This feature of CFDs provides access to a more significant number of global financial markets.

One of the main advantages of trading CFDs is that you can open positions in any direction. You simply buy or sell a contract depending on whether you think the price will rise or fall. Accordingly, you open a long or short position.

When trading with leverage, you should always be on your guard, as it can not only increase your profits markedly but also your losses.

How do I trade CFDs? 

The moment you open a CFD position, you select the number of contracts you wish to buy or sell. If the market moves in the direction you want, your profit also starts to increase.

• Buy.

You open a long position if you expect the price to rise, and profit appears when the price increases.

• Sell.

If you think that the selected instrument will fall, you sell the corresponding CFD short and make a profit when the price declines.

LeveragSetting the type and colour palette of the quote charte and margin for CFDs  

When you open a position in CFDs, only a part of your funds is used as collateral, and the leverage provided by the broker covers the rest. 

This is also known as trading on margin. For example, a margin of 10% means that you need to have 10% of the position's value to make a trade. The CFD broker covers the remaining 90%.

Spreads and commission 

When trading CFDs, you are always offered two prices that are linked to the value of the underlying instrument: the buy price (offer) and the selling price (bid).

The buying price will always be higher than the current base price, and the selling price will always be lower. The difference between these prices is called the spread. When you work on the Capital.com platform, no commission is charged on any trades made with CFDs.

The buying price (offer) is the price at which you open a long position.

On completion of a Sell position, the position is closed. 

The asking price is the price at which you open a short position. At the same time, if you buy an asset at such an open position, it means closing it as you repurchase the asset. 

Stop Loss and Take profit 

To sit at the monitor all the time and not constantly monitor the market, you should use limit orders, which allow you to automatically close positions at a given profit level. Take Profit orders to reduce the chance that you will miss out on a profitable asset price and miss out on a reasonable price.

Similarly, you can place stop-loss orders to reduce your risk and thereby limit your potential losses. A stop-loss is the threshold price at which a position will be automatically closed if the asset falls below the level you have specified as the limit for a downward move.

Stop orders are essential for building your risk management system, so we strongly recommend not neglecting them. 

Hedging 

Hedging is the most critical risk management strategy used by traders.

Hedging is a risk management technique used to reduce losses. It is used to protect one's profits, especially in times of uncertainty. In the abstract, the idea is that if one of your investments produces a loss, then you have an alternative hedged position to compensate for this loss.

Through the use of CFDs, you have ample opportunities for hedging, as shorting is available for all CFDs.

For example, you have assembled a long-term portfolio of blue chips, but the market begins to fall, and you begin to worry about the value of your portfolio.

With leverage, you can change the index of the respective market to hedge against losses in case the market starts a downtrend. Accordingly, when the market falls, whatever you lose in your leading portfolio will be offset by your hedge. Conversely, if the market continues to rise, you will lose your hedged position in the index but gain on the securities themselves.

With CFDs, you can trade shares, indices, commodities, currencies and digital currencies. On Capital.com's platform, there are thousands of different CFDs available, sorted into classes. All it takes is a few clicks to start trading.

How to start real time trading in India? 

Select a trading platform and download and install it on your computer to start trading on the platform. If it is a mobile version, you can download the app to your phone. Then register on the website, providing some of your personal information to identify yourself. It's a short process that won't take you long. 

Opening demo account 

A useful feature of most real time trading platforms is demo trading, where trading is done on a virtual account. A demo account is a valuable feature for beginning traders, allowing them to gain some experience, test strategies and apply new trading ideas. Just remember: demo trading is very different from live trading. It is not the same emotion; it is a more conservative execution of orders, making you feel more confident and adventurous. Nevertheless, demo trading is a good start for many beginning traders.

Opening real account  

Be sure to take the time to learn the basics of trading and familiarise yourself with the platform. Then, if you decide to open a real account after training, make a deposit in any way that suits you. You can do it with a bank card, an e-wallet or a bank transfer. 

As with any business, you'll need to acquire some knowledge and skills. It will take time, concentration and dedication to succeed. 

A trader must have certain personal qualities. These include time management, discipline and hard work. Of course, having them will not guarantee success, but they are necessary to start learning.

Remember, there is no secret to stock market analysis. There is no magic method that guarantees success. But it is possible to choose the way that best suits you and increases your chances of success.