In recent times, there is not a single aspect of life where technology has become important. From transportation to life support systems, home comfort, finances, technology has made its way in the various aspects of our lives. At a time when every facet of our lives is heavily exposed to advanced technology, it shouldn’t come as a surprise why technology has been playing a pivotal role in making stock trading easy and effective. If you want to know how technology has changed the dynamics of the stock market, keep reading this post.
1.Online Trading Apps – An Introduction
With the advent of internet technology, the days of cumbersome documentation are over. Today, there are lots of things that can be done online in regard to stock trading and investment. Whether you want to buy a share, sell a share, or perform any other stock-related task, you can do it right away through a desktop trading application, browser-based portal, or a mobile trading app. This has brought unprecedented levels of ease for stock traders and investors who can do trading anytime, anywhere.
Whether you have fast internet or a connection with low bandwidth, these mobile trading apps have been designed keeping in the mind such scenarios. It simply means that you can look forward to having a flawless stock trading experience at any point in time. However, make sure you choose the best trading platform in India after exploring all available options.
2.Artificial Intelligence
In the present context, AI or Artificial Intelligence has been playing a pivotal role in the field of stock trading. In fact, it is known to be the future of stock trading. All the big companies are embracing quantitative trading with large-scale data processing and machine learning skills to enable real-time market analytics.
Some popular AI-powered tools to make a prediction on the stocks are Equbot, Auquan, Blackbox Stocks, and Trade Ideas. Automated robots have been utilized to study millions of data points to perform trades at trifling prices and reduce the associated risks. In addition, it improves the accuracy to give the optimum return.
3.Quicker Trade Execution
Those days of sluggish trade processing are passé. When you choose to work with the best stock broker in India, you can choose to embrace faster trade execution. As the number of intermediaries is reduced considerably, you can expect to get your trade calls reacted quickly and effectively. The inclusion of advanced technologies has enabled stock traders and investors to keep aside time-eating issues like manual record-keeping, auditing, and verifications.
Apart from this, you can do trading anytime, anywhere which also increases your chances of accruing profits on any trade.
4.Better Security
In earlier times, trading in the stocks was extremely risky due to the manual handling of stock market operations. How can we forget the world-famous Harshad Mehta scam? However, things have changed remarkably in the past few years. Today, not only the stock exchanges like the BSE and NSE but also the best stock brokers in India employ high-end security measures to keep their client’s data extremely safe and secure.
5.Algorithmic Trading
Due to the introduction and promotion of Machine Learning and Artificial Intelligence, stockbrokers started to take Stock Market Investment decisions through smartly developed algorithms- this further promoted the concept of Algorithmic trading.
Algorithmic trading is meant to eradicate the human factor and make decisions based on programmed figures. The exclusion of human involvement simply means that emotions never have to play any kind of role in the decision-making process.
Algorithmic Trading can encompass the development of different Machine Learning concepts. A quick example of an algorithm is given below:
Buy stocks of a company when the average of its stock price for the past month is of more worth than its stock price over the past six months.
Sell shares of a company when the average of its stock price for the past month is lower than its stock price over the past six months.
6.Electronic Stock Exchange
The first online stock marketplace was brought by NASDAQ, which enabled the traders to trade in stock digitally. Today, most of the stock exchanges have been transformed into automatic–traded exchanges, where both the buyers and sellers can meet virtually and interchange various types of financial securities like stocks, bonds, currencies, commodities, and derivatives.
7.Terminals
Terminals were initially launched in the ’60s, but due to the rapid developments in technology, the terminals have become extremely high-end. The stock markets have witnessed a considerable improvement in the information readily available to the traders due to the enhancement in technology. For example, cloud-based trading software systems are being used tremendously which are accessible through any device.
8.Blockchain
Stock markets the world over are adopting Blockchain technology to ensure quick and secure stock transactions. It tends to feature a tremendous potential for secure trading and examining risks. Several market controlling bodies like NYSE, Japan financial services agencies, and Deutsche Borse, have been actively using blockchain technology in their infrastructure. SEBI has also initiated various steps to implant blockchain technology and reap the benefits.
The Conclusion
From the above pointers, it gets clear as to how technology has been reshaping not only the present but also the future of stock trading. The adoption of things like advanced trading platforms, automated trading calls, research tips, advanced charts has added more juice to the world of stock trading. However, make sure you choose the best stock broker in India to reap its true potential.