Trading Software


DEFINITION of 'Trading Software'

Computer programs that facilitate trading of financial products such as stocks and currencies. Software is usually provided by brokerage firms that enable their clients to trade financial products and manage their accounts. Different brokerages will have different software which determines the interface in which trades are made and information is searched. Other software can be purchased from third parties to enhance or add to what a brokerage provides.

BREAKING DOWN 'Trading Software'

Trading software have proliferated in recent years due to the growing popularity of electronic communication networks or ECNs, which are alternative trading networks that enable trading outside of the traditional stock exchanges or Bourses. ECNs have driven down transaction costs sharply, enabling many discount and full-service brokerages to offer trading software to their clients at little or no cost.

The software should be easy to navigate and, stable, and at the very least extremely secure. It is often a characteristic overlooked when selecting a brokerage, over other traits such as cost or popularity.

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  1. What happens if a software glitch fails to execute the strike price I set?

    If you've ever suffered the frustrating experience of having an order not filled or had a strike price fail to execute because ... Read Full Answer >>
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    Both stop orders and limit orders have their advantages and disadvantages; traders need to decide between the two based on ... Read Full Answer >>
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    The U.S. generally accepted accounting principles (GAAP) require companies to adhere to uniform reporting standards that ... Read Full Answer >>
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    Day traders capture profits from the difference between bid and ask prices by scalping stock. Sensing that a stock is going ... Read Full Answer >>
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