Understanding the online trading software

Online trading is nothing but trading via the Internet with the help of trading software provided by the broker. The trading platform may be a source of great confusion to them. It is important that you get a firm grip on the trading platform since it provides all the necessary tools to do technical analysis. You can also transfer funds online from your bank account to your share trading account with the click of a button.

The advantages of using online trading are:

  • Fully automated trading process which is broker independent.
  • Access to advanced trading tools to perform technical analysis
  • Investors have direct control over their trading portfolio.
  • Ability to trade multiple markets and/or products (you can trade in BSE/NSE)
  • Real-time market data.
  • Faster trade execution ( very crucial if you are a trader )
  • Easy to operate and manage account
  • No geographical limits.(whether you stay in New Zealand or Dubai you can invest in Indian share market through online trading platforms)

Our discussion is primarily based on the general features provided by a good online trading platform. It’s important that you check the quality and speed of the trading software provided to you by the broker.

LOGIN ID AND PASSWORD:

Your online trading platform should be protected by a login id given to you by the broker and a password of your choice. Password should be changed frequently. Some software prompts you to change your password every 15 days. Further, the facility to ‘lock’ the trading software to one computer would be an additional security measure. With this facility, you will be able to login only from one particular personal computer.

THE MARKET SCREEN:

For a beginner, the market screen might look like a jungle of numbers. It’s nothing to be confused about.

Market screen is the most important window that will help you get your trading done.  This window gives a tabular representation of the current market position for selected shares.  Each share makes up a row of data that contains the scrip name, its last traded price, last traded quantity, best bid rate, best offer rate, total volume etc. Market Watch window is highly configurable and you can decide which columns are to be viewed and which not, whether you require row or column separators, determine the size of all rows or each column, the color used to display data etc. There are a host of options available on a pop-up menu that can be accessed by right clicking on the Market Watch window. All these windows will be updated dynamically in real time and you need not ‘pull’ or refresh any information. It’s all real time updated. In fact you are in live market.

It will take only one day to understand the market screen. Market Watch window is the prime controlling window from where you can launch your trading actions. You buy or sell a share by clicking on the specific share on the market screen.

INDICES DISPLAY

Trading screen should have indices displayed at a convenient location on the screen.
It should display all popular Indices like Sensex and Nifty. The indices display should be capable of being customized to show other indices which you follow. An investor should keep track of the market indices so as to get an overall picture of the market sentiment.

REPORTS

Reports comprise of Order Book, Trade Book, Net Positions, Margin, Exercise Book and Holdings. In any trading terminal, all these reports are dynamically updated without the need to refresh or pull information. From the Reports window you can ‘Modify’, ‘Cancel’, ‘Square Off’ or ‘Exercise’. The appropriate buttons will be enabled/ disabled depending on which action can be taken based on the currently selected row. You can save these reports to a file either in text or CSV format.

CHARTS

A Good trading software will provide the following facilities to chart:

  • Streaming intraday tick-by-tick charts & historical data.
  • Ability to chart multiple companies and open unlimited charts. Simultaneously.
  • Unique draw tools including trend line customization and Fibonacci tools.
  • Different chart type options such as Line, Bar and Candlestick.
  • Lots of analysis options including indicators such as MACD, RSI, Williams % R etc for price and volume panels. There are at least 14 indicators that are useful to a trader.
  • Facility to save chart as JPEG file.

MARKET ANALYSER

Market analyser feature would provide top traded, top gainers and top losers with % change, value and total quantity. It would also provide the list of shares that have touched their 52 week High or 52 week low. It would also help to analyse all quotes and extract those where quantity traded exceeds a given figure or transaction value exceeds a given value. This helps you identify large trades and can give you vital clues to where or in which scrip activity is currently happening.

You may like these posts:

  1. Going Online
  2. What is a trading account?
  3. Understanding MACD

5 Responses to “Understanding the online trading software”

Babu Shirole

June 6, 2011 at 12:41 pm

Send details

Share Market

August 20, 2011 at 11:14 am

It was a awe-inspiring post and it has a significant meaning and thanks for sharing the information.Would love to read your next post too……

Thanks

sajeev

November 5, 2012 at 1:13 pm

Thanks for your great sharing information and it is very use full to biginers and expecting more from you,

Thank You

sachi

June 25, 2013 at 7:11 pm

Hi ,

I am an NRI residing in Singapore. I am now planning to start on Indian shares and also have a PAN card with me.
Which is the best online trading platform that I can use where I can do the transaction myself without depending on brokers.

J Victor

June 26, 2013 at 12:12 am

Hi sachi , You cannot trade without depending on a broker. it’s the brokers who give us the online facility to trade in stocks. Shares can be bought or sold in Indian stock markets only through a share broker.

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