Electronic Trading
Electronic trading refers to the buying and selling of financial securities through online platforms and computerized systems. This method allows traders to execute transactions quickly and efficiently without the need for face-to-face interaction or manual processes. Electronic trading has revolutionized financial markets by increasing accessibility, reducing transaction costs, and enhancing market liquidity. It is used for trading a wide range of assets, including stocks, bonds, forex, and commodities, and is the dominant method of trading in today’s global financial markets.
Example
Platforms like E*TRADE and Robinhood allow investors to trade stocks and other securities electronically through their computers or smartphones.
Key points
• Involves buying and selling securities through online platforms.
• Provides quick, efficient, and cost-effective trading.
• Widely used across various asset classes, including stocks, bonds, and forex.
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