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.

RELATED TERMS
  1. Electronic Communication Network ...

    An electronic system that attempts to eliminate the role of a ...
  2. Adware

    A software package that plays, displays or downloads advertisements ...
  3. Day Trader

    A investor who attempts to profit by making rapid trades intraday. ...
  4. Direct-Access Broker

    A stockbroker that concentrates on speed and order execution ...
  5. Trading Account

    1. An account similar to a traditional bank account, holding ...
  6. Currency Trading Platform

    A type of trading software used to help currency traders with ...
Related Articles
  1. Forex Education

    Market Makers Vs. Electronic Communications Networks

    Learn the pros and cons of trading forex through these two types of brokers.
  2. Trading Strategies

    Day Trading Strategies For Beginners

    From picking the right type of stock to setting stop-losses, learn how to trade wisely.
  3. Options & Futures

    Direct Access Trading Systems

    DATs can dramatically speed up order execution - find out how this system gives novice traders an edge.
  4. Trading Systems & Software

    The Global Electronic Stock Market

    The way trading is conducted is changing rapidly as exchanges turn toward automation.
  5. Investing Basics

    Inside IPO Roadshows

    Understand more about IPO road shows. Learn the reasons why an IPO road show is important for the success of a company's public offering.
  6. Charts & Patterns

    How To Use Volume To Improve Your Trading

    The basic guidelines to analyzing volume may not apply in all situations, but overall, they can help direct entry and exit decisions.
  7. Trading Strategies

    4 Common Active Trading Strategies

    Active trading entails buying and selling securities with the intent of profiting from short-term price movements.
  8. Technical Indicators

    Basics Of Algorithmic Trading

    Algorithmic trading is the process of using computers for placing trades in order to generate profits at a speed and frequency that are beyond a person’s capability.
  9. Saving and Spending

    All That Glitters Does Not Belong in an IRA

    Gold can be an attractive investment given its meteoric rise. But those wanting it within their IRA must look at some of the hurdles facing the investment.
  10. Term

    The Pros and Cons of Sell-Offs

    A sell-off is the rapid sale of a security that’s followed by a drastic decline in its value.
RELATED FAQS
  1. What is Fibonacci retracement, and where do the ratios that are used come from?

    Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician ... Read Full Answer >>
  2. 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 >>
  3. 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 >>
  4. What are the key differences between pro forma statements and GAAP statements?

    The U.S. generally accepted accounting principles (GAAP) require companies to adhere to uniform reporting standards that ... Read Full Answer >>
  5. 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 >>
  6. 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 >>
Hot Definitions
  1. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  2. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
  3. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
  4. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
  5. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
Trading Center