What is a trading platform?

Introduction

Gone are the days when a trader had to visit or call their broker to be able to trade the financial markets. Now there are brokers all around the globe who are accessible online and allow traders to trade within the comfort of their home using an online/electronic trading platform.

A trading platform refers to the software used for the purpose of opening, closing (buying & selling) and managing market positions through a financial intermediary that is a broker.

Today, with online trading platforms, trading has become a do-it-yourself activity. In other words, traders can now buy and sell assets on their own. In fact, an online trading platform allows traders to carry out multiple trades without anybody’s help provided that a trader has minimum knowledge about online trading and the platform being used.

Online trading platforms are often flooded with features and tools that help traders optimize their trades for the best outcomes. Some of the advantages of using an online trading platform are as follows:

  • Reduced cost of transaction.
  • Faster trade execution.
  • Elimination of broker bias.
  • Real-time trading.

How does an online trading platform work?

Online trading is simple from a trader’s perspective. The trader logs in, selects an asset to buy or sell, click a button on the mouse and a transaction takes place. What the trader doesn’t see is what happens behind the scene to make a happen.

Programming and high-end technology are what facilitate order entry and the variety of choices a trading platform entails. An online trading platform is connected to servers where the technology keeps track of thousands of data points related to price changes of a particular asset and that data is delivered to traders in real-time.

Traders are then able to act on the data received and decide on the type of order to enter. Market orders will execute immediately and based on how the market reacts after an order is entered, the trader makes a profit.

Trading platform available when trading with Markets.Online

MetaTrader 4 (MT4) Platform:

What is a trading platform?

Markets.Online provides the MT4 platform to its traders. MetaTrader 4, commonly known as MT4, refers to an electronic trading platform frequently used by online Forex traders. MT4 is a reference in the online trading industry; moreover, it was the creation of the MT4 platform that enabled online trading to become accessible to the online community. It is one of the most powerful and stable online trading platforms available till date.

Traders of Markets.Online will have the choice between a web-based and a downloadable version of the MT4 platform for desktop use as well as a mobile version that must also be downloaded.

Now that you have a broad understanding of what a trading platform is, the following chapters will be dedicated to Markets.Online’s trading platforms.