TRADING PLATFORM: GENERAL DESCRIPTION, TYPES, HOW TO CHOOSE

What is a trading platform?
A trading platform is a trading system that uses a market model to execute transactions through a web interface interaction. Trading platforms can be used for free or at a discount. Depending on the financial intermediary, an intermediary acts as an intermediary between two parties to facilitate a financial transaction. Institutions commonly referred to as financial intermediaries include commercial banks, investment banks, mutual funds, and pension funds.

With trading platforms, for example, https://dotbig.com/, traders can maintain funded accounts and conduct limited trades over a specified period of time. Ideal trading platforms should employ sophisticated database architecture to enhance security, information transparency, and secondary market liquidity.

The web-based environment allows traders to interact successfully, apply appropriate search criteria, and trade electronically with offers based on transaction parameters and other terms and conditions to satisfy both parties.

Summary
- A trading platform is an application system used to conduct transactions, from opening to closing, and managing market positions through brokerage firms.
- Trading platforms offer functionalities and features that enable real-time interaction of trading partners.
- The most common types of trading platforms include the commercial trading platform and the prop trading platform.

Understanding trading platforms
Basically, a trading platform is a web-based marketplace that provides users with unlimited functionalities to perform transactions, browse catalogs of financial instruments and monitor accounts through financial institutions outside the banking dealer community.

In most cases, trading platforms are equipped with a combination of additional features such as premium research, real-time quotes, news feeds, or charting tools to facilitate the real-time availability of trading information and ensure smooth trading between traders.

Trading platforms are also designed to meet the particular needs of specific markets, such as futures markets, equities, options: Calls and Putin option is a form of derivative contract that gives the holder the right, but not the obligation, to buy or sell an asset on a specified date (expiration date) at a specified price (strike price). There are two types of options: calls and puts. U.S. options can be exercised at any time or in any currency. By providing such a fragmented market structure, trading platforms offer a greater number of options for executing trades and managing trades.

Types of trading platforms
There are two types of famous trading platforms: prop trading platforms and trading platforms. By prop trading platforms, applications are designed by large brokerage firms and mimic the trading style and requirements of electronic brokerage models.

On the other hand, trading platforms are mainly targeted at retail investors and day traders. Trading platforms are easy to use and come with useful features such as charting how to read stock charts. You will actively trade stocks as an investor in the stock market; then, you need to know how to read stock charts. Even traders who primarily use fundamental analysis to select stocks to invest in still often use technical analysis of stock price movement to determine specific buy and sell stock charts. And news feeds to promote research and provide more detailed information to investors and traders.

Active trading comprises many useful trading tools and techniques to signal trends. Selecting an ideal trading platform requires sufficient prior knowledge of active trading.

This is the first part of the blogpost. Another one can be found on the DotBig blog.
CreateReport