However, choosing an online platform that satisfies your unique investment needs can be time-consuming and overwhelming, given the abundance of choices.
Check out Zenfinex’s site to see how innovative online platforms can provide you with real-time data for a better trading experience.
How do you use technology platforms to buy and sell stocks in real-time? What are technology platforms available for use in real-time stock trading? What are the ways technology platforms affect real-time stock trading?
This article explains how you can trade real-time stocks using technology platforms. Learn more about technology’s impact on real-time stock trading.
How to Use Technology to Trade Stocks in Real-Time
Recent technological advances have made it possible to trade stocks using real-time data. Typically, you trade stocks online using a broker’s website, software, or application.
Online trading is the purchasing and selling securities over a network of computers or other electronic devices, such as wireless connectivity, touch-tone phones, and other modern devices(1).
When trading online, customers typically use their regular internet service provider (ISP) to visit a brokerage firm's website. Customers can access the site’s information there and sign into their accounts to place orders and check the status of their accounts.
Here are the most common orders you may place when trading on a technology platform:
Limit Order: A limit order outlines the highest price a trader will pay for an asset (buy limit order) or the lowest price they're willing to accept (sell limit order). Limiting orders can be helpful for investors who care more about price than a quick execution.
Market Order: This is a buy (or sell) order for a security at the best price. Traders frequently use market orders when they are looking for quick execution.
Stop-Loss Order: Once the security has traded at or through a specific price, this order lets a trader manage their risk by purchasing or selling at the market price. Put another way, if the security reaches the trader's stop price, the order turns into a market order and takes effect at the best price.
To reduce risk and safeguard their wealth, online investors should develop the habit of consistently placing stop-loss orders.
Take-Profit Order: This order establishes a specific price to close an open trade at a profit. An automated sale will occur when a security's price hits the limit.
Take-profit orders remain unfilled if the price falls short of the limit price. Another name for it is a buy-stop order.
Ways Technology Affects Real-Time Stock Trading
Technological progress enables today's real-time stock trading, especially with automated systems and machine learning.
Real-time monitoring has greatly facilitated most trading experiences today. This technology allows brokers and investors to obtain precise and reliable quotes.
Real-time signals have also helped reduce the possibility of trading blunders due to human error. Now, choosing the best-investing strategy after researching the stock's performance is simple. You can respond to market conditions with real-time technology as soon as possible.
Trading with technology platforms can give you quick, affordable access to the world's financial markets.
However, knowing what you want from an online trading platform is crucial before you start. You should also do preliminary research to ensure the broker satisfies all your investing requirements and complies with all legal and regulatory standards.