Many years back, the primary sector was booming, followed by a boom in the secondary sector. The boom in the tertiary sector was pumped up with the introduction of the Information Systems (IS). Trading in commodities earlier used to be done physically and soon came the introduction of Margins (Borrowed Funds). The less volatility in the various markets enabled the least efficient way of trading, but increased volatility in the assorted markets can leave speculation responsible for it. Increased peculation, gambling, betting etc had a common force behind it, which was none other than E-Commerce.
Electronic trading is a method of trading securities, foreign exchange, futures etc with the help of Information Technology. It formed a replicated and a virtual market for traders to trade and shine their luck by trading on margins. The marginal trading made it very simple, and exposed traders to high risk and high reward with minimal investments. It had started in New York, where the NYSE (New York Stock Exchange) was found, and had got it running at the Wall street. Today there are a number of traders trading around the world on various platforms provided by their brokers. The ease of access to internet, faster processing computers and friendly user interface has made trading as simple as playing flash games.
It has also benefited many technical analysts who are able to draw trend lines, Fibonacci Retracements, Moving Averages etc. The easy access to US data figures during the week, has been evolutionary for traders. Moreover the access to account histories, current equity, the ability to trade on platforms specially designed for mobiles has made everyones life easy. Specially with the vast availability of high speed internet on the move, in developed country known as 3G supports live quotes on the move.
Today the world is amazed as to how technology has enhanced trading, what is to be wondered is that- how it will step forward and astonish us in the near future.
