Trading Platform: Features You Cannot Afford To Ignore

A trading platform is proprietary software, usually offered free on maintaining a funded account with stock brokers or forex dealers. It provides traders the ability to initiate buy and sell trades and manage their positions. Most platforms also include market analysis software that allows traders to chart the markets. Software associated with trading platforms is easy to operate and extremely user friendly. Most of the times, the broker or the dealer will guide beginners how to use its various features. This is often accomplished by offering traders to try their hands on a demo account before opening a funded account.

Regardless of whether it is a trading platform for forex or stock trading, primarily it is a channel for communicating and exchanging information between you and your broker. It may either be an online trading platform or it may be installed or made available for download on your computer. In either case, an internet connection is necessary for getting live feed required for placing orders and monitoring accounts. A web-based trading platform has a distinct advantage as it allows traders access to markets from anywhere through any computer connected with the Internet.

However, there are certain features that need to be checked. Availability of real time and historical data is a absolutely necessary. Another feature is the ability of placing all types of orders that you need for managing risks associated with trading in financial markets. If you are one of those who trade in the forex market during your spare time, the trading platform you need should allow strategy automation. This allows you to create an automated trading system so as to execute trades at precise entry and exit points and adhere to time tested money management rules.

Advantages of an Automated Trading Platform

There are various advantages of choosing a good trading platform. The ones that have been developed of late are the ones that are automated. While some people fret about the efficacy of automated trading platforms, these can be immensely convenient.

The first thing that you can accomplish by using an automated trading platform is to reduce the level of emotion involved in trading. Once you have decided on a plan, the automated trading platform carried out the instructions without human emotion. Sometimes you may be a bit hesitant to pull the trigger even when you have thought through various decisions. An automated system allows these decisions to be carried out easily.

The backtest feature that most of the automated trading platforms offer ensure that historical data can be applied to determine whether an order is likely to be successful or not. Such an automated trading platform helps in maintaining discipline too; something that is extremely helpful in volatile markets.

Sticking to the trading plan is not something everyone can do. Various thoughts and opinions tend to shade them; something that is not a great idea especially when you have a thought out plan. You can maintain consistency by using an automated trading platform.

The ease of use and convenience outweighs every other benefit. Automated trading systems can carry out orders and trades based on specific instructions about the price of a specific share or stock. You may not need to monitor the stocks that you are looking to buy every day and you can be sure that they will be picked up once they reach the desired rate.