Want To Know The Traditional Electronic Trading Platform Varieties?

When the market makers realized that their business model needs a reconsideration of the mitigating risk situation, the ideas of the electronic or digital mode of trading sprouted. They started thinking outside the view of the traditional trading methods to find out a way to make consistent and targeted profits. However, the old methods are still in use and you need to know the basics of how the trading process was actually conducted.

This review documents the way by which the trading platforms facilitate trading by improving features like

  • market transparency
  • making the market participants contribute and access pools of liquidity

The trading platforms associated with fixed income markets

The term virtual trading deals with the various ways to conduct trades electronically. So, to fully understand the situation of the shift from those voice-brokered trading patterns to digital trading and its real impact on market making, it is encouraged to differentiate the trading platforms in accordance to how and which type of investors provide the real liquidity.

  • The Order-driven type

In this trading scheme, usually, the trades are complemented on a central limit order book, where the market investors register and place orders secretly. Even though such trading platforms rely much on the designated market makers, who promise to provide a minimum value of quotes, any of the trading interested people can also contribute their means of share to the market liquidity by placing a limited number of orders on the previously defined central book.

  • The Quote-driven mode of trading

While considering the mode of quote-driven markets, the dealers occasionally distribute quotes only upon the request of a client. Still, this mode is prevailing in the existing bond markets. Alternate to the order-driven type, here only the dealers are chosen to provide the market liquidity. Thus, this makes a situation where the clients have to depend on the immediacy services.

Even the dealer platforms can be classified into

  • The One-dealer platforms

These are the extension of the traditional type based on voice brokerage and they require the individual dealers’ quote on screen for the client to access it. This type can reduce the transaction cost by directly reducing the operational cost.

  • The Multi-dealer mode

This allows the simultaneous accessing from different dealers. Here the client gets the benefit of favorable rates creating competition among the dealers. This can enhance market liquidity and transparency.


read more

Types of market seen in the financial sector

The marketplace where sellers and buyers participate to trade assets like currencies, bonds, derivatives, and equities is the financial market.  It is defined by having the following features:

·         Basic regulations on the costs, fees, and trading

·         Market forces which determine the securities prices

·         Transparent pricing

The financial market exists in all the nations.  Few of the countries have fewer people participating while others make trillions of dollars every day.

With the advancement of technology, the investors have access to all the markets and products in the world. Listed below are the different types of market in the financial sector.

Different types

Capital markets- In this market, the institutions and the individuals trade in financial securities.  Even the organization sells their securities on these markets to raise additional funds.  The capital market comprises of stock markets and bond markets.

Cryptocurrency market- In this market, cryptocurrencies like bitocin, litecoin, etc are traded. The trading is conducted online and it uses the blockchain technology to make the transactions safe and secure. There are automated robots like bitcoin code available in the market which helps in buying and selling the digital currencies.

Money market- In the case of the money market, the financial instrument which has short-term maturities and high liquidity are traded.  Participants use this market as a way to lend and borrow money for short-term.  The securities traded here are treasury bills, Eurodollars, certificate of deposits, commercial paper, federal funds, etc.  Since it has short maturity period, it is known as cash investments.  This market is considered safe because of the short maturities.  

Derivatives market- The value of the derivatives is derived from the underlying assets.  A derivative is basically a contract and the price of the contract is determined by core asset’s market price. It is quite complicated and is not ideal for inexperienced people who are just looking for speculative trading.  

Forex market- Forex market is the market wherein the currencies are traded.  It is the most liquid and largest market in terms of the value of money traded on daily basis.  Any firm, any business can enter the market and conduct transactions.  There is no marketplace that is centrally located for currency exchange.  The transactions are done over the counter.  The market is open 24/7. Now you can even conduct trade online through various online brokerage accounts. Even an average investor can sell and buy currencies with just a click.

 

 


read more

A look into Investment Analysis

 Concept:

Investment analysis(IA) is a spectrum of learning which details with many phases of investment and its processes. It details with analyzing past investment decisions, the future plans for investment and also choose the type of investment vehicle that will suit the investor needs to the full extent. This website reviews the complete study about investment analysis from a beginner’s perspective.

 

The purpose of IA:

This helps to break down and simplify the entire process of investing for the betterment of the investor’s learning and understanding of the same. This acts as the key to a healthy portfolio management system.it helps in making an analysis of the past performance of investments and their impact on the investors.

The process:

With the help of certain standardized factors, the past investment decisions are analyzed by the prospective future investors and they look into details like the types of securities, their industrial background, their profit-making capabilities, etc and the utmost essence will be the risks these securities had to come across. And also it will focus on the risk management process in detail.

The key factors in this process of IA include the factors such as the entry price, expected time horizon, and the reason for making that investment at any particular time. These factors are very necessary to understand the ideology of making investment decisions wisely. Therefore, these must be closely monitored to find the best suitability to each investor.

Types of Investment Analysis:

The two broad classifications of IA is a bottom up and top down investment analysis methods. The bottom-up method focuses on analyzing the stocks individually for finding their values, their competence, pricing policies and other unique qualities of the company and the investment. This approach works without a focus on the market cycles that affect the stock or the economic factors that are related to these investments. This is simply more of a microeconomic focus on the investment policies of investment.

The top-down analysis is the one which focuses on the economic, market and industrial factors that affect the investment decisions at large. This is pretty much necessary before stepping to make a huge investment in any sector or security. Here the investor evaluates the financials of an industry in which he wishes to invest and find all the related technical terms and concepts and past performances so that he can confide with this confidently.

Hence the investment analysis and the factors surrounding this concept are very important from an investor’s point of view.


read more

A digital currency trader

The algorithmic trading software for cryptocurrency is crypto code, it has the potential to give exponential growth to your profit.  It has very good accuracy rate to forecast the market.  From the reviews of experienced traders, one can say it is safe software and people can start investing using it. Only genuine crypto brokers can have a partnership with it, if not genuine they will be rejected. Many people are earning profits using this software. It maintains good SSL standard to keep the user’s personal information and financial information’s secure.

The software developers have taken four years to develop this user-friendly and stable software. This is an investment platform which provides its user both with opportunity and safety. The software was developed in amalgamation with top brokerage counterpart. It has given positive results for trade-test which makes it more reliable.

The value of Bitcoin and other cryptocurrencies has significantly increased over the last few years so traders can look forward to crypto system as a platform to trade on these digital currencies. The traders with or without experience can rely on this software for investment and can make a massive profit. Every year the market is seeing a new high on the stored value of digital currencies so it is wise to start investing in this market.

The secret of success of crypto lies in its transparency and reliability. The software is incorporated with risk management factor which helps it to identify the risk long before its arrival and saves the traders from trading in a volatile market. The traders have their independence to choose their broker and the level of risk they want to take. All the brokers associated with crypto code are experienced and dependable.

The software is loaded with numerous advanced features on which traders can rely upon to make a successful trade.  Some of the features are listed below.

  • Investment return

According to the investment gurus, this software has high win ratio compared to other tools available today.

  • Market monitor

It has an advanced feature of market monitoring which keeps its traders alert about the rise and fall of the stored value of digital currencies.

  • Configurable

It is highly configurable which means its traders can make their own trading strategies or can depend upon the trading strategies provided by the software.

To learn more about the trading process read the crypto code review.


read more

What Are The Different Types Of Security Exchanges

Security exchanges are characterized by a countless number of securities getting traded regularly every second between scores of traders, companies, and firms. If the Companies put their shares on sale in the exchange and aim to raise funds for growth and surplus cash profit. When a company decides to get listed in the exchange for trading, it can opt to trade in one or more securities exchanges. Selling, reselling, and purchasing of securities like stocks, bonds, and other investment vehicles happen in these exchanges without break in the live hours.

Exchanges are of different types and let us note the major types.

 

Organized Securities Exchanges

Tangible Exchanges where outstanding securities are resold are called organized exchanges and are known as secondary markets. The most common example of organized exchange is the New York Stock Exchange (NYSE), which constitutes almost 93 percent of the total dollar volumes of traded shares. Other examples are American Stock Exchange, Chicago Stock Exchange, and Pacific Stock Exchange.

If you want to list your company is an organized exchange, there are certain requirements to be met in terms of the number of publicly held shares, stockholders owning a specified number, say 100 shares, equity, and pretax earnings.

Transactions are said to be done on the ‘Floor’ of the exchange for which you have to own a seat. If you are a trader, read more about Crypto Code and other trading brokers who own seats in NYSE.

 

International Capital Markets

The debt market outside the US is the Eurobond market, the foreign bond market is an international market for long-term financing assets and the equity market outside the US selling blocks simultaneously in many countries is the International equity market. In the former market, governments, and corporations issue bonds denominated in dollars that are sold to non-US investors.

 

Over-the-counter (OTC) Exchanges

These are intangible exchanges where securities which are not listed in organized exchanges are sold and purchased through competitive bid and negotiation.  The traders who wish carry out transactions on the securities are called dealers and are linked to the sellers and purchasers through the Nasdaq system. Nasdaq stands for National Association of Securities Dealers Automated Quotation. Trade takes place through bids and among thousands of bids placed in a short time, and the best bid takes the security. The bid price is the best price offered by a dealer to buy the security and ask price is the lowest price at which a dealer is ready to sell it. The difference between these two prices is called spread and this is where the dealer tries to cash in.


read more