Direct Access Trading - DAT


DEFINITION of 'Direct Access Trading - DAT'

A system that allows a client to trade directly with another client, a market maker on Nasdaq, or a specialist on the floor of an exchange without broker interference.

BREAKING DOWN 'Direct Access Trading - DAT'

DAT is the preferred trading system for day traders, where success is dependent upon speed of execution. For the average investor, DAT is not necessary.

  1. Nasdaq

    A global electronic marketplace for buying and selling securities, ...
  2. Day Trader

    A investor who attempts to profit by making rapid trades intraday. ...
  3. Specialist

    A member of an exchange who acts as the market maker to facilitate ...
  4. Market Maker

    A broker-dealer firm that accepts the risk of holding a certain ...
  5. Broker

    1. An individual or firm that charges a fee or commission for ...
  6. Forex Spread Betting

    A category of spread betting that involves taking a bet on the ...
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  1. Is it better practice to use a stop order or a limit order?

    Both stop orders and limit orders have their advantages and disadvantages; traders need to decide between the two based on ... Read Full Answer >>
  2. How do day traders capture profits from the difference between bid and ask prices?

    Day traders capture profits from the difference between bid and ask prices by scalping stock. Sensing that a stock is going ... Read Full Answer >>
  3. How is buying on margin regulated by the Securities and Exchange Commission (SEC)?

    The Federal Reserve Board and the Financial Industry Regulatory Authority (FINRA) regulate buying on margin to a greater ... Read Full Answer >>
  4. Why is the Vortex Indicator (VI) important for traders and analysts?

    Doug Siepman and Etienne Botes developed the vortex indicator to anticipate reversals in price trends. They believed that ... Read Full Answer >>
  5. What is a common strategy traders implement when using the Trade Volume Index (TVI)?

    The trade volume index (TVI) indicates whether an asset is being accumulated or sold. It is calculated using intraday tick ... Read Full Answer >>
  6. What is a common strategy traders implement when using the Volume Weighted Average ...

    Using the volume-weighted average price (VWAP) when trading in short-term time frames is highly effective and simple. One ... Read Full Answer >>

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