What are online stocks? Why are they trending
For many years, trade and investment were a part of the lives of all industrialized countries. This does not, however, simply everybody can become a trader. In reality, until recently, getting into this company was a difficult process — bidding was held solely in exchange buildings, and admission required a license. The Internet simplified the full procedure of investing in the stock market exchange for everybody. This spawned a completely new trend: internet trading. For others, it became a pastime, while for others, it became a full-time job. Even though it has grown so popular, several people are still unaware of what online trading is, why it is so popular, and how simple it is to become a trader. online stocks trading allows you to make stock market transactions over seconds or less. However, one thing hasn’t changed since pre-internet times: a private trader still requires a broker to trade.
This is how it works
A trader chooses to make a transaction (for example, to purchase 100 shares of Apple). He locates this asset (Apple shares) on his trading platform, selects the amount (100 pieces or 1 lot), and makes a purchase order. Execution of the transactions by a broker starts when a request is made by a trader. He must locate a counterparty — another trader who is prepared to purchase the same item at the same price. On the stock exchange, the broker searches for a counterparty. The transaction will be finalized after the search is done.
Pros and cons of online trading
Although stock trading may be incredibly rewarding, it is also crucial to keep in mind that it has certain drawbacks. Let’s have a look at the primary benefits and drawbacks of stock trading.
Pros of online trading
- Elimination of Physical Broker- no physical broker is required when doing online trading
- Multiple Options for Trading in one place- in trading platforms, you will find different options for trading
- Real-Time Price- it will give you real time price of all the stocks
- Trading Control In Your hand- all trading will be controlled by you only
- Global Market Update- you can also find an update of global market on online stocks
As every coin have two sides so as just with advantages also comes some disadvantages
- Hidden Cost- there are chances that some hidden cost will be present
- Technical Knowledge- you need to have technical knowledge before using a trading platform
- System Error- there are chances that some system error may occur.