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Online Trading Singapore |
Singapore forex trading, stock trading strategies online |
Today's Quote
Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market.
~Warren Buffett
Stock Basics - Table of Contents
Stocks Basics: What Are Stocks?
Stocks Basics: Different Types Of Stocks
Stocks Basics: How Stocks Trade
Stocks Basics: Where to buy stocks?
Stocks Basics: How to Read A Stock Quote
Stocks Basics: The Bulls and The Bears
How Stocks Trade
Two Basic Methods for Stock Trading
There are two basic ways exchanges execute a trade:
On the exchange floor
Electronically
Exchange floor
Trading on the floor ie. the New York Stock Exchange(NYSE) is the image most people
have thanks to television and the movies of how the market works. When the market is open,
you see hundreds of people rushing about shouting and gesturing to one another, talking on
phones, watching monitors, and entering data into terminals. It could not look any more chaotic.
Electronically
In this fast moving world, some are wondering how long a human-based system like the NYSE
can continue to provide the level of service necessary. The NYSE handles a small percentage of
its volume electronically, while the rival NASDAQ is completely electronic. The electronic
markets use vast computer networks to match buyers and sellers, rather than human brokers.
While this system lacks the romantic and exciting images of the NYSE floor, it is efficient
and fast. Many large institutional traders, such as pension funds, mutual funds, and so forth,
prefer this method of trading.
For the individual investor, you frequently can get almost instant confirmations on your trades. It also facilitates further control of online investing by putting you one step closer to the market.