Electronic trading over the Internet – is the exchange of financial assets via the Internet, i.e. buying and selling currency pairs, stocks, commodities and digital currencies through trading platforms provided by brokerage firms with the aim of profiting from the movement of the prices of these assets in the direction we expected. It is no different from the exchange of anything else in our daily lives except that it takes place over the Internet.
Electronic trading over the Internet
Thanks to the development and spread of the Internet beginning in the current century and with the presence of high-performance computers, online trading has increased significantly, especially since the global economy is increasingly dependent on financial assets such as stocks and others, and it is expected to continue to increase more and more.
Stocks, Bonds, ETFs, Options and Contracts, Foreign Exchange, Cryptocurrency, Bitcoin and more. All of these products can be traded online.
The most common types of assets for trading are forex, that is, electronic trading over the Internet, such as the US dollar, the euro, and the Japanese yen, that is, the exchange of one currency for another on the basis of the expectation of an increase in its value for the purpose of profit.
Forex trading
Forex is the largest global market with a trading volume of 6 trillion dollars per day and the most profitable market, as there are those who achieve 10% of the invested capital, and there are those who achieve much more than that, and it is also natural that the loss occurs for those who do not deal professionally with the market.
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Online trading
In the past, investors and traders had to talk to the trading company or broker they deal with to do trading deals for them, but with the advent of the Internet, the situation changed radically!
Now, many trading brokers are offering electronic trading over internet platforms, enabling investors to make and execute trading deals themselves. The most famous of them is the MetaTrader platform.
Online trading platforms
It is a program that allows investors to open, close and control trading deals, and it is often offered for free by trading companies. Trading platforms contain all the tools and aids that support investors to succeed in trading, such as indicators through which you can determine what the price will rise and what will fall.
Thanks to Electronic trading over Internet, the investor is able to place buy and sell orders, a stop loss order (automatic exit from the open deal even when we are not in front of the computer), and all things and they can follow the prices in real time.
We can say that the Internet has changed the form of trading, Electronic trading over the Internet by shortening the time and providing the various resources that every investor needs to succeed in trading, and the most important thing is to significantly reduce the cost.
Electronic trading gave the opportunity to every trader in the world to join the trading market, trading foreign currencies or trading digital currencies, or trading gold and oil or trading any other products, and electronic trading is available 24/5 unlike trading in traditional ways. It can be started from home with only a computer and the Internet.
How to trade online?
The basic principle of Electronic trading over Internet is to buy the traded product, Electronic trading over the Internet then wait for its price to rise, sell it, and take advantage of the price difference.
The stock exchange is simply a market like any market in which commercial exchanges take place, that is, buying and selling.
The stock market differs according to the things that are bought and sold in it. For example, Electronic trading over the Internet there is the stock market (stocks and bonds), gold trading, the iron market, and the digital currency market (bitcoin…etc). Forex is any foreign currency.