Online trading is a real time platform provided to traders to buy & sell their securities at the moment they are interested. Through online trading you could trade in various securities like: Stocks, Bonds, Futures, Options, Commodities, Forex currencies etc.
Advantage of Online Trading
- Fully automated screen based system that provides higher degree of transparency
- Investors can transact from any part of the country at uniform prices.
- Greater function efficiency support
- Totally computerized network with full efficiency.
- You could change your decision according to the market condition.
- You do not require, depending on your broker to buy & sell your securities.
- Online transaction reports come on your mobile and e-mail ID of investors.
- You could trade from your home & office.
- You could do intraday trading easily.
Disadvantage of online trading
- There is probability of platforms malfunction
- Online trading is unsafe if it is done on margin
- A wrong input could give a higher loss to trader.
Online trading platform is provided by financial institutions which are affiliated by SEBI. You have to open an Dmat account to the brokrage firm to get a personal platform for trading.