Learn the concept of basic online trading

Last Updated on April 26, 2021

Education article: Learn the basics of online trading

Online trading has become a popular way of dealing with financial products, as online brokers have also moved online through their platforms that provide all kinds of financial instruments such as stocks, commodities, bonds, ETFs, and futures.

In the past, the investment process was difficult and expensive and was limited to a specific category, the investor used to contact his brokerage company and submit a request to buy the shares of a specific company for a specified amount.

With the technological development and the emergence of the Internet, the trading process has become easy and simple, as the trader can open deals and trade while sitting at home through his smartphone, all he needs is good internet availability, opening a brokerage account, depositing sufficient funds for trading and applying banking services via mobile phone.

The trading process is a great alternative to creating wealth if you want to invest your money, but you should know that it will take some time and effort to succeed and achieve the desired profit.

What is online trading?

Online trading is the process of buying and selling financial instruments over the Internet, with the introduction of the World Wide Web almost all transactions can be performed using a computer, including stocks, currencies, options, and futures.

Online trading made many financial operations possible. Stock trading, currency trading, and other trading tools have become increasingly popular due to the ease of access provided by the online space. Years ago, only stockbrokers had access to stock trading information, but now many more individuals obtain information about investing and engage in online trading.

Trading takes place via an online platform that facilitates investment in financial assets such as stocks, investment funds, and commodities. The broker provides a suitable platform for trading, which is a program through which the trader manages and follows his deals.

Trade stocks online

Nowadays, companies sell shares to anyone who has a trading account for the purpose of raising money, when an investor buys shares he invests in a company and becomes a partial owner in it.
Everyone can go online and do so easily because the process is automatic, as the trader has to contact the broker and pay him a commission in exchange for buying the shares, and the broker then contacts the exchange to complete the purchase.

On the exchange, a computer or a person must match buy and sell orders. Some exchanges act as auctions while others match sellers and buyers. Electronically, this process is clearly slow and somewhat expensive, at the same time, online stock trading makes buying and selling company shares much simpler.

Online Forex Trading

Investors can buy and sell currencies online using a forex trading program, for a person to participate in online forex trading, they must open a forex account on one or more forex websites.
To achieve profit, currency trading depends on the fluctuation of exchange rates for currency pairs, the currency market is the largest in the world and it can be a good place to earn money, at the same time, there is also a possibility of incurring large financial losses, in order to make money in Forex trading it is necessary for the trader to He has extensive practice and experience.

Professional Trader and Analyst, economist in Financial and Forex marketsince 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.
Mohammed Abdelkhalik

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