ONLINE STOCK TRADING

Trading stocks involves buying and selling stocks through a stock broker from the stock market/exchange. The idea behind stock trading is to buy stocks at a lower price and sell it at a higher price to book the profit made. With the advent of computer and internet connections, stock traders no longer need to make a phone call to their brokers in other to buy or sell stocks. Internet has made online stock trading a very popular way of trading stocks. Just by the click of a mouse with a lower trade commission, you can buy and sell stocks of companies across the world through online stock brokers.

We can now research about stocks and companies through the information provided online and go back to our trading platform to place our market orders by only clicking "buy" or "sell" on the broker's platform. Very easy and also efficient.

THERE ARE TWO WAYS STOCK EXCHANGES EXECUTES THEIR TRADES

The first is through EXCHANGE FLOOR. This happens when trading are done on the floor like in the New York Stock Exchange (NYSE) where stock traders call their stock brokers to buy stocks for them. This is an old way of trading stocks.

The second is ELECTRONICALLY. With the modern change in technology, stock trading is popularly done online courtesy of internet with the chains of computer network for more efficient and fast transactions. This has made it easy for everyone across the world who have interest in trading stocks to be able to participate in the global financial market.