| With the immense technological advancement and | | | | have full power to control the activities of their |
| the advent or invasion of computers at almost every | | | | clients on a real-time basis. The broker can fix |
| nook and corner of this world, the concept of | | | | advance exposure limits of the clients on the basis of |
| Internet stock trading has gained massive popularity | | | | the deposit by the client with the broker. Risk |
| among all sections of the masses. Stock trading, | | | | management for brokers has thus become easy and |
| which has been a way of profit making for only a | | | | the mechanism is absolutely flawless as is needed |
| privileged few for ages is now exercised by all and | | | | while dealing with these faceless customers. |
| sundry. Internet stock trading has in fact become the | | | | The traditional methods of placing orders either |
| second source of primary income for millions of | | | | through phone calls or by personally visiting the |
| people of varied professions all across the globe. | | | | broker's office are now almost forgotten stories. The |
| Due to its speed and transparency in trading | | | | days of face-to-face interaction generating |
| methods, Internet stock trading is preferred by | | | | arguments, frustrations, debates, discussions and |
| many. Nowadays, with the sophisticated technologies | | | | disputes are now over. Increasingly busy life and |
| in place, Internet has provided the investor a major | | | | acute time crunch has gladly led to the acceptance |
| trading platform. Similarly, the brokers have also been | | | | and adoption of the new system of Internet-based |
| equally benefited by these technologies. Internet now | | | | stock trading. Ease of trading and settlement along |
| acts as an interface between the stock exchange, | | | | with reduced transaction costs of seamless trading |
| the broker and the investor for executing various | | | | systems have made the life of brokers as well |
| securities transactions. | | | | investors a lot easier. |
| An online broker can execute a large number of | | | | The advent of Internet-based trading have brought |
| transactions for a large client base. More importantly | | | | about a sea-change in the volume of stock |
| these extremely sophisticated and efficient | | | | transactions made per day, the nature and |
| technology and software are now available at very | | | | settlement of stock trading and the profile of market |
| low costs. Technology is also getting upgraded day | | | | participants. Internet stock trading is considered an |
| by day to keep pace with the growing and varied | | | | exciting way of trading in stocks as transaction can |
| needs of the customers. | | | | be completed within minutes and sometimes within |
| To begin with, the investor signs an agreement with | | | | seconds. With the immense popularity of web-based |
| his Internet broker and gets access to a password | | | | stock trading, there might be a huge number of |
| enabled trading terminal on his computer. Thereby, he | | | | investors online at the same time executing orders |
| gets access to real-time trade information on the | | | | and that might result in very quick price changes. At |
| offers and bids. He also gets information such as the | | | | times, there might be communication lags and this |
| last offered bid, volume last traded including the rate | | | | factor might make online trading a bit risky affair. All |
| and quantity. He can set his own choice of market | | | | investors performing online trading are thus advised |
| watch for various shares that he is interested in. | | | | to set price limit orders as a safeguard against major |
| Internet also enables him to constantly track his | | | | losses. |
| portfolio, the value of which gets updated on a | | | | Even with all its benefits, Internet stock trading has |
| real-time basis. Internet-based stock trading is fast, | | | | its own flaws and might prove to be extremely risky |
| hassle free and transparent. Once the investor places | | | | at times. It is therefore always advised that |
| his order, it goes to the broker's trading server and | | | | investors should only trade with money that they can |
| from there to the main stock exchange. After the | | | | afford to lose. Constant alertness is another primary |
| order gets executed, the confirmation along with the | | | | requirement of Internet traders. It is essential that |
| order number, trade number and time of execution all | | | | you spend some time learning the basic facts and |
| flows in to the client. | | | | figures of online trading before venturing into it. With |
| With the type of interface that works in an | | | | knowledge comes wisdom, which can improve your |
| Internet-based stock trading mechanism, the brokers | | | | chances of increasing profits. |