What is electronic online trading?

What is electronic online trading?

What is electronic online trading? Electronic trading via the Internet is the exchange of financial assets via the Internet, buying and selling currency pairs, stocks, commodities, and digital currencies through the trading platforms offered by brokerage companies with the aim of profiting from the movement of the prices of these assets in the direction we expected. It is no different from the exchange of anything else in our daily lives, except that it takes place over the Internet.

What is electronic online trading?
Thanks to the development and spread of the Internet from the beginning of this century and with the presence of high-performance computers, online trading has increased significantly, especially as the global economy is increasingly dependent on financial assets such as stocks and others, and is expected to continue to increase more and more. Stocks, Bonds, ETFs, Options and Contracts, Foreign Currencies, Cryptocurrencies, Bitcoin, and more. All of these products can be traded online.

The most common type of asset for trading is a forex, the exchange of foreign currency pairs, such as the US dollar, the euro, and the Japanese yen, i.e. the exchange of one currency for another on the basis of the expectation that its value will rise with the aim of making a profit. Forex is the largest global market with a trading volume of 5 trillion dollars per day and the most profitable market, as there are those who achieve 10% of the invested capital and there are those who achieve much more than that. It is also normal for the loss to occur for those who do not deal professionally with the market.

How to trade online?
The basic principle of electronic trading is to buy the product being traded on, then wait for its price to rise, sell it, and take advantage of the price difference.

The stock exchange is simply a market like any market in which trade exchanges take place, buying and selling.

Stock markets differ according to the things that are bought and sold, for example, there is the stock market (stocks and bonds), the gold market, the iron market, and the digital currency market (Bitcoin). Forex is any foreign currency.

How do you start trading online?
You can open an account with one of the trading companies offered to you, which is one of the most famous companies in the world, and we will accompany you step by step towards success in addition to the various advantages.

Trading Contracts vs. Options
CFDs are the fastest and cheapest way to profit from the financial markets.

When trading contracts for difference, you buy or sell a contract for a specific market, and what really happens is that you are not buying from the market something tangible, but a contract that owns the value of the commodity you wanted to buy.

For example, if you believe that the price of gold will rise against the US dollar, you will buy gold (and sell US dollars) for a specific price. You do not own a gold coin, but you open a contract at a set price so you can sell it again in the hope that the price will go up and you will receive the profit in cash. Many traders are attracted to this category because it is available with a facility (leverage) that enables you as a trader to start with a small amount.

Foreign exchange (forex) trading
Forex is the foreign exchange market or the global exchange for currency trading, and the word “Forex” is an abbreviation of the two words, Foreign Exchange, any trading and trading of foreign currencies.

Foreign exchange trading is trading in the forex market, where foreign currencies are bought or sold using the “currency pairs” system, meaning that at the time a trader buys one currency, he sells another currency in exchange for it.