What does it mean to trade on the stock exchange. Stock market. Trading on the stock market. What is traded here, what indices are used

15.08.2023

Nowadays, accessing stock exchanges is not something difficult. Any person who decides to engage in trading can afford to buy and sell shares in order to make a profit.

However, for any trading on the stock exchange, as for trading on foreign exchange market, you need to have a certain knowledge base. To understand how to start trading stocks, there are many books and videos that can provide all the information you need about stock trading and trading in general. The stock is an organization that provides funds through the buying and selling process. Moreover, trade takes place using the most developed electronic trading systems. Thus, stock exchanges are, as it were, an indicator of the development of the economies of states and the world economy as a whole. Top five stock exchanges:

So how do you start trading stocks? First of all, you need to choose a broker (of course). The broker provides the opportunity for traders to trade in real time. And you need to choose for the reason that an individual does not have direct access to trading on the stock exchange.

A broker is an intermediary. When choosing one, you should pay attention to the commission, the quality of service, in general, and no less important, what kind of analytical platform this intermediary is ready to provide. Fortunately, there are currently many programs from which you can choose the one that is most convenient.

Of course, before you start trading shares, you need to open a deposit into your trading account. But you shouldn’t immediately rush into it and try to earn a lot of money. The approach here is slightly different than, for example, in the foreign exchange market.

Firstly, shares are an instrument that can be bought or sold only during a certain period of time. At the end of the day, it will close. This means that the frequency of gaps is 5 times greater than in the currency market. It matters.

The second is the role stock indices, which act as the first indicators of stock market dynamics.

Greetings, dear subscribers and guests of my blog! Today the word “promotion” (not to be confused with discounts in a hypermarket!) is familiar to almost every high school student. Hundreds of thousands of Russians trade them, traders and investors exchange experiences and give advice.

Here in Russia, a quarter of a century ago, everything was just beginning, and now many participants in those events receive a good increase in their pension in the form of dividends. Do you want to ensure a decent and active old age? Then it's time to figure out how to trade stocks on the stock exchange.

When during voucher privatization Russian citizens received their first securities; only a few knew how to choose the right shares, where they were traded, where to sell them later or, on the contrary, buy more, and how to learn to determine the right moment for buying and selling.

Since then, much has been simplified: securities have become uncertificated, they are traded via the Internet, and many training courses for beginners. Of course, courses are good, but the knowledge and experience of practitioners is no less useful.

Today I will try to dispel the fears of those of you who are almost ready to trade stocks, but are not quite sure that they will succeed. First, let's refresh our memory.

What are shares

A share, as is known, assigns a number of rights to the owner, which include rights to part of the property (in case of liquidation) joint stock company, as well as part of its profit in the form of dividends, for participation in shareholder meetings, and also (if there is a large block of shares) for participation in the management of the company.

To become a shareholder, first of all, you need to purchase shares, which is documented in the form of an entry in the register of shareholders. There are several ways to solve this issue. The easiest and most convenient way is to become a client of a brokerage company.

An individual does not have direct access to exchange trading and the intermediation of companies licensed for this activity is the only opportunity to trade securities according to market quotes.

Why do you need a broker?

Are transactions possible without a broker? Yes, they are possible. For example, two individuals may enter into a share purchase and sale agreement. It must contain the following information:

  1. Type of shares (simple or registered).
  2. Issuer, i.e. name of the joint stock company.
  3. Nominal price of 1 Central Bank, i.e. price at the time of issue.
  4. Number of papers in pieces.
  5. Current price 1 shares.
  6. The full amount of the transaction.

The right to own shares passes from one owner to another only after appropriate changes in the register of shareholders. To do this, an entry is made in the register about the transfer of ownership from the seller to the buyer.

A necessary condition is a transfer order from the seller to the registrar. In addition, additional annexes are drawn up containing the procedure for resolving possible disagreements. The buyer opens a personal account in the register where the shares will be accounted for, for which a special questionnaire is filled out.

Agree, this method is labor-intensive and can be used when the shares are not in circulation on the open market, or if the transaction is made at prices that differ greatly from market prices. In addition, trading without a broker is complicated by problems finding sellers and buyers.

It is also possible to purchase shares directly from the issuer (in case of an additional issue, after a buyback and in some other cases). But beginners do not need to delve into such subtleties, since such transactions are usually carried out in order to restructure blocks of securities between large shareholders.

So, if you decide to trade shares through a broker (the issue of choosing a broker is a separate topic), you must enter into an agreement with him for the provision of brokerage services.

The agreement specifies the rights and obligations of the parties when the broker executes client orders, as well as the procedure for processing transactions by the clearing house. After this, all that remains to be done is to download the program - a trading terminal and start trading.

But the question of stock selection remains: which ones to start with? Russian brokerage companies like , or , allow you to trade not only Russian stocks, but also American ones.

How to choose stocks

For example, the Finam company allows you to gain access to trading on the Moscow Exchange (until December 2011 MICEX) and on the New York Stock Exchange NYSE (colloquially “Nice”).

All transactions can be made from a single trading account. For the right choice, it is useful to compare the returns of Russian and American stocks. Here's what's happening in the American information sector in 2017:

For comparison, TOP-3 among Russian ordinary shares included in the MICEX index.

However, there is a so-called second-tier shares, more risky, but potentially much more profitable:

What may be difficult for beginners is that these shares are less liquid, i.e. if necessary, they are more difficult to sell. The ratio of securities traded on the open market in Russia is shown in the diagram:

So still: which ones are better to trade? To do this, you need to analyze a number of factors:

  • State of the industry to which the company belongs
  • Growth potential of the stock (actual profitability, whether it is overvalued or undervalued)
  • Dividend history of the company

For example, shares of Mechel JSC by the summer of 2014 fell more than 90 times relative to the January 2011 high. The company was in a severe crisis. But the competent work of management made it possible to save production and now the securities are trading 15 times higher than their minimum with great potential for further growth.

Need to keep in mind

People often ask how to trade stocks on Forex. Forex dealers themselves sometimes impose this service on beginners. But this is a lie. The instrument traded in such companies is called CFD (Contract For Difference).

This means that the trader does not buy shares, but makes money on the difference in quotes for a certain period. This is also possible, but with real stock trading, you become a shareholder with all the ensuing rights, and if something happens, the money will not be lost along with a shell company, of which there are many among Forex dealers.

Books are constantly being published on the topic of stocks, both classics and new ones. A good reference for beginners is:

And if you want to take an express course technical analysis market, get acquainted with popular shopping QUIK terminal and prepare for real trading, watch this free video webinar from the guru Russian market— Dmitry Mikhnov. It will be interesting!

Afterword

In this article, my goal was not to teach you how to trade stocks. I just wanted to show that there is nothing complicated about it.

Subscribe to the blog news, here you will find useful materials about the practice of stock trading and investing with analysis of specific situations.

The question of how to trade stocks on the stock exchange is relevant both for beginners who simply want to diversify their lives and try something new, and for experienced investors trading on stock market not the first year. Why is that? Yes, because the stock market changes in accordance with global trading trends, and therefore it is simply impossible to use the same strategy all the time. What brought income yesterday, today, and even more so tomorrow, will not work and bring dividends on shares. And below are the most relevant and effective ways how to trade on the stock exchange correctly and what are the most effective and popular strategies used by successful brokers.

Where to start trading on the stock exchange

Before presenting the most effective ways to trade on the stock exchange, you need to understand where to start trading so as not to lose and at least stay afloat for some time. For this it is necessary to mandatory do good preparatory work.

This preparatory stage consists of the following procedures:

Thus, it turns out that it is almost impossible to just start trading on the stock exchange. Or rather, you can trade, but gaining rich experience, skills and profit is almost impossible. Another thing is that you need to calmly accept the fact that trading in shares is a risky activity associated with risks of unprofitability. Therefore, as in any business, what is important is perseverance, desire, skills and, let’s not hide, some “gut instinct” that allows you to invest in those assets that are not in demand, but in the long term bring a certain rate of margin.

Comprehensive work and preparation is the key to effective entry into the stock market.

Effective strategies in the stock market

The stock market has been around for a long time. Therefore, there are well-known methods and methods that almost all traders use. Another thing is that in each individual case it is necessary to use different methods and different strategies. But below will be a list of the most effective strategies that allow you to achieve success in stock trading.

Effective stock trading strategies:

  1. Investing on the downside. This means that in a permanent state of decreasing profit volume, all investors sell shares, and then, when the value of these shares decreases, they buy them and again increase the market price of the shares. A fairly popular method is when some kind of artificial panic is created for a specific block of shares, and then a stable state is established in the market and the value of the shares increases significantly;
  2. Long-term strategy for investing in company assets . An investor invests in assets that this moment do not have a high value, but presumably have growth prospects. In this case, it is possible to receive income only in a very long term, since assets increase in value only after years or decades.

    Otherwise, you may not understand and guess, and lose, because this indicator does not always grow. And if it grows, then only due to the inflation index, no more.

  3. Investing when the company's value grows. A fairly popular method among those investors who want to make money in the short term. But you also need to be sure that the company has growth prospects and current value shares is not marginal, and will soon increase. The peculiarity of such investments is that, as a rule, the price of such shares is high and is suitable for experienced and wealthy investors.

These are, so to speak, the most effective and popular strategies. But, as a rule, experienced investors use three methods at once to diversify their investment portfolio. Here, as with currency risks In order to protect your capital as much as possible, you need to keep your savings in different currencies. Same with stocks. It is necessary to invest in both long-term and short-term assets.

Investor or trader

Considering the issue of trading shares on the stock exchange, it should be said that there are those who simply trade securities and earn their minimum on the resale of shares, and there are those who invest in shares and make money on them only by increasing the nominal value of the company. So the first market subjects are called traders . And the second - investors . The first are aimed exclusively at resale, while others allow the possibility of not only selling, but also long-term preservation of assets.

Classification of investors in the stock market:

  • Short-term investors. Characterized by the fact that they buy securities and other assets on the exchange only for a few days or weeks. Their task is to sell assets at a price higher than the purchase price. Such assets do not remain the property of the entity;
  • Medium-term investors. Such investors are characterized by buying shares for a period of up to one year. Then the shares are sold;
  • Long-term investors. Consequently, they buy assets and securities for a period of more than 1 year. And then, based on the analysis, they decide whether to sell or not sell the shares.

Depending on which category an investor belongs to, he uses different methods of analysis. For example, short-term investors work exclusively with terms of reference, but for medium- and long-term investors I work not only with the technical parameters of assets, but also with the basics of fundamental analysis.
But not only investors have their own classification. Securities and asset traders also have their own classification.

Classification of stock market traders:

This is an article from the site vseofinansah dot ru. If you are posting this article on another site, then it has been stolen.
  1. Day traders. They work quickly, even lightning fast. They make money on minute price fluctuations.
  2. Swing traders. They work based on fluctuations in securities prices. As a rule, they purchase securities, hold them in their portfolio for several days or weeks, and then, when the time is favorable, sell them;
  3. Scalpers. So-called speculators who immediately acquire assets, put them up for sale and earn money solely on the basis of an established premium.

The only good thing is that each market player makes an independent decision about who he wants to be at the moment. The same market player can be a long-term investor in some assets and a swing trader in others. There are no restrictions.

What to choose and how much time it takes

And here the question arises: What is better to choose: long-term investing or short-term trading? Let us note right away that long-term investment has the least risks, which sooner or later, if it does not bring profit, will at least recoup the investment taking into account the price index. Long-term trading and investment can be predicted and are subject to less market fluctuation.
If you consider yourself to be someone who is willing to take risks, and the invested amount is not something important and critical for you, then you can try short-term trading. But here it is important to accept the fact: that the risks are high, at the initial stage the losses will be large, and the profit may not be received at all. At short-term investing It is always necessary to have a certain reserve of funds that will allow you to replenish your stock of securities on a daily basis.
Another question that worries most potential investors: How much time will be spent on the trading process? The question is relevant because many successful investors are people who work on trading platforms in addition to their main place of work, so they cannot devote all their time to this process.
And here, too, everything depends on what role the investor and trader choose: invest in long-term assets or short-term, for example, by acting as a scalper. If money is invested in long-term securities, then it is enough to look at the stock exchange once a week or a couple of times a month and monitor the situation. Let us remind you that many exchange platforms allow you to automatically set the rate of profit that the trader wants to receive. If it is achieved due to changes in the value of securities, the shares will be automatically sold, and the trader will receive a fixed amount of margin.
If we're talking about about short-term trading, then you need to devote a whole day of work to such a process, since you will have to track minute fluctuations in stock prices, sell or buy securities at an acceptable and profitable price.

Thus, we can conclude that each market player can choose one of three strategies:

  • Active. An active strategy is one that involves the daily activities of market players through short-term work and making a profit. Cash invest with the aim of generating income from the resale of assets.
  • Briefcase. Portfolio is an exclusively long-term strategy, when a trader works for the future and invests money in securities that can only bring income in the future.
  • Mixed. It is characterized by diversification of the investment portfolio, when the investor works depending on personal circumstances and the nature of the stock market.

Conclusion

D In order to successfully trade shares on the stock exchange, it is not enough to have money and desire. One of the most important stages for achieving success is thorough preparation, including theoretical preparation. It is necessary to learn about the peculiarities of the stock market, understand the concepts of the most successful traders. Without a theoretical basis, it is difficult to begin practical work, since in the process of work it is necessary to understand what is happening, what the key operations mean, etc. There are many good books and recommendations on the Internet.
After the theoretical basis, it is necessary to competently approach the choice of a trader represented in the country. It is necessary to choose a proven and reliable intermediary who will allow you to receive your earned money. ( 10 ratings, average: 5,00 out of 5)

Today, the popularity of the stock exchange is constantly growing and attracting more and more people. Technically, the trading process is simple. You need Internet access, an exchange terminal program and an agreement with a broker. Watching the movement of stock prices, you need to make a purchase or sale. However, to make a profit, it is important to obtain the necessary knowledge, analyze the market situation, be patient and train the skill.

Exchange and trading

The exchange is a participant in market mechanisms and ensures the operation of basic instruments in the field of finance: currency, goods, securities, etc. Trades are held regularly. They are organized on a real site (financial centers) or on the Internet - virtually. Their main features include:

  1. Trades are carried out in conditions of transparency, open access and free pricing. Operations take place without influence from the state, but in accordance with the rules of the law.
  2. The exchange's income is commission from transactions.
  3. Trading transactions provide an opportunity for experienced traders and beginners to earn money.
  4. Exchange transactions are carried out according to uniform requirements to the conditions and securities, currency, etc. Trades are carried out by counter offers of participants.

Trading on the stock exchange is the execution of purchase and sale transactions of securities - shares, bonds. The stock exchange ensures the establishment of an equilibrium price, intermediary services when withdrawing funds, a guarantee of transaction execution. Disputes are also resolved on site.

Procedure to start trading

When considering the topic of how to trade on the stock exchange for beginners, it is important to determine the implementation of a number of necessary actions.

  1. Choosing a broker and concluding a contract. Participate in the auction yourself individual can not. Transactions are made only through an intermediary. The broker provides access to the site through the trading program, writes off taxes, and maintains accounting records. For services, the broker takes a percentage of each transaction. Communication with the broker is via the Internet; a visit to the office is not required.
  2. Commission size. Brokerage services can be paid for both commission and other deductions. It all depends on the conditions. The size of the commission always affects the price of your trades. Small commissions make it possible to make short trades and make big profits.
  3. Exchange terminal. It is important to choose the right program. They differ in the range of services and reliability of network access. The terminal must provide viewing of current stock prices, a drawing of a quote chart, and the announcement of orders for sale and purchase. A demo version is provided first. After selection, the terminal is installed on the computer.
  4. Defining a strategy on the stock exchange. Stock trading for beginners is suitable for an upward strategy. It is necessary to act based on the specific situation and move with the market. There is no need to trade against the market when securities are falling, they don't buy until their price reaches a reversal. It is better to place orders, open or close positions based on data received on the network.
  5. Loss control. If the price movement does not coincide with your forecasts, you should not wait for it to change. This may result in your account being reset. For a position in the terminal, you need to set a loss limit – stop-loss. As soon as the price reaches this line, the position will close itself with less losses.

Before you start trading, you must register with personal account. It is worth practicing on a demo account with an amount of at least $1000. Having chosen a strategy, you need to use it for a month. If the results are positive, you can open an account with your own money, which is done in a few clicks.

How to choose the right broker

Exchange trading for beginners is provided only through an intermediary. There are a lot of criteria to choose a broker on the trading platform. There are selection options suitable for beginners.

  1. Free training materials, market analyzes and conditions for selecting a strategy.
  2. Ability to work on proven platforms, relevant for both professionals and beginners. Today, MetaTrader with versions MT4 and MT5 is recognized as the best.
  3. Availability of promotions and various bonuses. Tempting offers are not always available as the broker promises. Often, in order to take advantage of a bonus, you need to make several transactions or have a specific amount in your account.
  4. Using deposit bonuses. They are provided when replenishing a real account. However, the broker can freeze the bonus along with the client’s money. To withdraw money you will have to fulfill a number of conditions.
  5. Availability of a company license, place of registration of the broker and legality of his work. You should not trust reviews; not all opinions are true or written by professional traders.

Before you start trading, it is better to thoroughly study the market and the main companies operating in it. Spending time choosing a broker will help you avoid losing your invested money.

How to trade for a beginner

Stock trading for beginners should start with studying useful materials, consultations experienced traders. The development of the economy affects the continued relevance of the stock exchange. Therefore, traders are constantly improving their skills and using new strategies.

  1. Opening a demo account and trying out the first knowledge gained. You should immediately take advantage of the training materials offered by the chosen company.
  2. Studying literature. Reading books is cheaper than video lessons and classes with teachers on the Internet. The books contain more useful information, to which you can return periodically. Reading articles is useful for getting up-to-date information and good advice. It is important to improve your knowledge and skills in the field of technical and fundamental analysis.
  3. Help from an experienced trader. A real man A person who has achieved success on the stock exchange will be best able to explain the rules of trading, market analysis, the use of strategy, and suggest good sources for training. If you don’t know anyone, it’s worth studying the experiences of famous people who have succeeded in stock trading.
  4. Monitoring market trends. It is important to study the analytics posted on the broker’s website and read the opinions of experienced traders. Watching specialized channels and economic news will help you form a correct understanding of the market.
  5. Use of paid subscriptions. Obtaining the opinion of professionals is important to determine trading strategy and training. You can always compare it with your own, as well as with the theoretical knowledge obtained. It is necessary to always be aware of the main economic news in the world.
  6. Seminars and lessons. Classes promote understanding of the market. The seminar usually focuses on one aspect of investing. Seminars can be paid or free.
  7. Start of trading. It is better for a beginner not to use large deposits. It is enough to try to open an order for a small amount to understand how the program works. Combination of training and real trade will help you learn trading faster.

Buying shares

Trading securities requires studying and analyzing companies whose shares will be traded on the stock exchange. To make a profit and not lose your deposit, you need to study about a hundred large companies, their development and specifics. In the end, no more than ten must be selected.

An offer is made to selected firms to purchase their assets. If about 3 companies respond to the offer, this means that the price you have given for the shares is too high and does not correspond to their real position in the market. You must offer a price suitable for no more than two businesses. After agreeing, choose only one company, taking into account all the details. It is advisable to work with a company whose field of activity is most understandable and close.

A beginner should start trading assets of large companies. Their shares have high liquidity. For such companies it is easy to find the latest news and information for analysis. If the company is located in the United States, then information about its shares can be found on the Internet resource of the Exchange and Securities Commission. There is also a special service of companies online that combines them according to various criteria. You need to install a filter on stocks. Entrance to the service is paid with a subscription.

Major Stock Exchange Brokers

New organizations that provide intermediary services on the stock exchange are constantly appearing online. Choosing a broker should be done by comparing several companies. First, it is worth considering popular companies.


Transactions on the Moscow Exchange

The Moscow Exchange ranks first in the country in terms of trade turnover and number of participants. It is included in the list of the 20 largest venues in the world. The main trading instruments used on the exchange are:

  • Mutual Funds;
  • securities;
  • futures;
  • currency;
  • precious metals, etc.

Transactions take place through trading terminals. Data security is ensured by electronic keys used for confirmation.

To start trading you need to do the following:

  1. Selecting a service tariff from the options offered by the brokerage company.
  2. Concluding an agreement with an intermediary through his website or in the office.
  3. Selecting software and installing it on a PC or tablet. The most popular are QUIK and MetaTrader.
  4. Replenishment of a trading account.

Stock Exchange- is an important participant modern economy. It gives almost anyone the opportunity to earn good money. It all depends on the willingness to study the peculiarities of the world financial system, analyze the processes occurring in the economy, and competently apply them in trading. Only constant improvement of your knowledge and skills will help you become a true professional in the stock market.

Exchanges

Good day, readers of the blog about trading. occurs on exchanges where sellers meet buyers and price decisions are made. Some exchanges have a physical location where transactions take place “on the floor” of the trading floor. You've probably seen the corresponding photos or pictures in which traders wave their arms widely, raise them high up, shout something, signaling to each other. Another type of exchange is virtual, consisting of a network of computers where shares are traded electronically.

The main purpose of the stock market is to facilitate the exchange of securities between buyers and sellers, and to maintain fairness and fairness through certain rules. Just imagine how hard it would be to sell shares if you had to call all your neighbors, relatives and friends trying to find a buyer. In fact, the stock market is nothing more than a large, super complex fair connecting sellers and buyers.

Before we continue, we need to draw a dividing line between the primary and secondary markets. On primary market An IPO occurs, that is, trading in shares that are issued for the first time by a new company.

On secondary market shares that have been issued for a long time are being traded and have already changed hands at least once. This is what we mean when we talk about the stock market.

It is also important to understand that companies whose shares are traded on exchanges are in no way involved in the trading process itself.

The New York Stock Exchange or NYSE is the most prestigious in the world. The Great Tableau was founded more than 200 years ago in 1792 by the signing of the Sycamore Treaty by 24 New York brokers and merchants. Today, the NYSE, with stocks such as General Electric, McDonald's, Citigroup, Coca-Cola, Gillette and Wal-mart, is the preferred choice for largest companies America.

The New York Stock Exchange is of the first type (as mentioned at the very beginning), where trading mainly takes place on the floor, face to face. The flow of orders from brokerage firms that are members of the exchange goes to the floor brokers, who direct them to the appropriate places where the stock is traded. These places are called trading posts, in which a specialist occupies a central position. His task is to bring the seller and buyer together to complete the transaction.

Trading shares on the New York Stock Exchange occurs like an auction. The current price is the highest price at which someone is willing to buy and the lowest at which someone is willing to sell. Once the transaction has taken place, all details on it are sent back to the brokerage firm, which notifies the trader that his order has been executed.

Although humans play a big role in the stock trading process on the NYSE, there is no need to think that it is still in the stone age: computers play a huge role in this process.

NASDAQ

The second type of exchange that we mentioned at the beginning is virtual and is called the over-the-counter (OTC) market. NASDAQ is the most popular on it. It does not have a physical location or sales floor. Trading here takes place through computer and telecommunication networks of dealers.

Previously, it was believed that all large companies were listed on the NYSE, and all the rest, so to speak, the second echelon, were on other exchanges. But the technological boom of the 90s of the last century changed everything. The Nasdaq is now home to many big tech companies such as Microsoft, Cisco, Intel, Dell and Oracle. This was due to the fact that Nasdaq has become a serious competitor to the NYSE and is currently the leader in trading volume among the world's exchanges.

Brokers on NASDAQ act as market makers (similar to specialists) for various stocks. Market makers provide a continuous flow of quotes, that is, bid and ask prices, with a predetermined spread level for the stocks for which they make a market. They can bring buyers and sellers together to complete a transaction, but most often act as intermediaries: they buy from sellers and sell to buyers, thus providing high liquidity and supporting large trading volumes.

Other exchanges

The third largest exchange in the United States is the American Stock Exchange (AMEX). In 2008, it was purchased by the NYSE and since 2012 has been called NYSE MKT LLC. It has a physical location in the financial district of New York and trades there like the NYSE. AMEX is today the premier marketplace for trading small-cap stocks, ETFs (exchange-traded funds) and derivatives (primarily options).

There are many more stock exchanges around the world. And although American market is rightfully the largest, it represents only a fraction of the trading opportunities around the globe. Two others financial center are located in London, where the London Stock Exchange is located, and Hong Kong, with the Hong Kong stock exchange.

The last place worth your attention is the OTCBB - an electronic over-the-counter listing system for stocks that do not meet the requirements of an exchange listing (in short, all those companies that do not reach the main exchanges). It is home to the smallest stocks because there is virtually no control. Just don't confuse the OTCBB with the NASDAQ, which is also an electronic over-the-counter system, but where companies go through a rigorous selection process so that their shares can be traded on this platform.

As you have seen for yourself, it does not happen on the street, but on special platforms - stock exchanges. Today, there is an increasing emphasis on electronic trading, which allows traders to get orders executed faster and more accurately. ECNs play a big role in this. Even the NYSE, which has always had a specialist as its key figure, is moving increasingly toward automated computer trading platforms, such as UTP. In other words, the rapid growth of technology, and its widespread introduction into the stock markets, makes it so that stock trading in the near future will be the domain of computers and robots with minimal participation person. Trading Blog thanks for your attention. Be successful!