Business and Personal Finance Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
- ONLINE TRADING
If you trade online, you use a computer and an Internet connection to place your buy and sell orders. Some online traders are day traders, buying securities and selling them within a few hours-or less-to take advantage of price changes as they occur. Others use online trading to place orders outside of normal trading hours. While online trading may become the norm in the future, especially as after-hours trading and electronic communications networks (ECNs) gain popularity, there are a number of issues to be resolved. These include, for example, the responsibility of online brokerage firms to monitor trades by inexperienced or over-zealous investors to prevent major losses resulting from inappropriate buy and sell decisions, and the need to keep and provide accurate records of all trades.Back