Trading platform software for real time trading
These days,real time trading is becoming increasingly popular all over the world. As a result, a vast range of financial instruments for trading has become available at the click of a mouse.
Thanks to the Internet, online trading offers limitless possibilities, as traders can access the global financial markets from their computers.
As a market trader can trade via the Internet, there is a need to use a real time trading platform software, a specially designed software whose purpose is to provide the trader with access to the market's trading operations and analytical tools.
Real time Trading platform software (or terminals) plays a critical role in trading on the foreign exchange market. Hence, the quality of the trading platform largely depends on the efficiency and profitability of transactions made by a trader. Therefore, a trading platform is designed to provide a trader with all the necessary functionality; it should be secure, mobile, and high performance and speed.
Investors choose a trading platform depending on the strategy and trading volume while making a decision. Therefore, traders should consider both the cost of training and the features available.
For example, traders who follow short-term strategies will need level 2 quotes and charts with "market depth" for specific stocks. At the same time, options traders will benefit from tools specifically designed to visualise options strategies.
Types of Trading Platforms and Their Purpose
Usually, a good brokerage company strives to provide traders with several trading platforms with different functions to choose the one that gives them the most comfortable trading experience.
So, what types of trading platforms are commonly available, and what are they used for by traders?
- Standard trading platform software: provide a wide range of trading services, orders, trading elements. These terminals are more like a "base" for most others. They are stable and provide a lot of indicators.
- Mobile terminals are the portable analogue of the standard trading terminal. The mobile terminal is the same as the common terminal only on your smartphone. Usually, it is an excellent alternative for trading away from home as long as you have internet access. The only disadvantage is that you cannot use additional scripts on mobile terminals. However, this terminal is perfect as a temporary help if you travel far from your home.
- Web trading platform software: most often your broker's "private" terminal. You can use it on any gadget, on any browser, from wherever you are - by logging in to your broker's site and entering your details, you can trade. The advantage of the web terminals is that you do not need to download additional programs to your device.
- Automatic terminals: This type of terminal will trade for you. With automated trading, you can build your strategy, copy trades and make money with a minimum amount of time—the automated terminal trades for you.
Of course, the universal trading platform is the standard terminal. However, traders choose the one that best suits their needs at a given time.
Criteria for choosing a trading platform
Every trader should understand that there are significant differences between the trading platforms software. When choosing "your" real time trading platform, there are some features to consider that will affect the success of your trading:
Speed and performance are the essential aspects of choosing a real time trading platform. Poor performance on these elements can affect your success, as different trading platform charts and quotes may not be loaded in time, resulting in untimely action that could lead to the loss of your deposit.
- User-friendly interface;
Trading platform software should always be intuitive - the interface is responsible for this. Imagine that you were unlucky today; there was a bad trade. You launch an application in which all the controls are scattered chaotically, while the interface has an annoying colour design. You obviously won't be happy! Therefore, to trade comfortably, all market trading platforms should be able to customise it for you.
The functionality of the trading platform plays a huge role in your choice. You should always have a particular set of trading tools for analytics, all sorts of indicators and charts at hand. If you wish to use the indicator trading method, your trading platform must be equipped to apply indicators.
The best real time trading platform for beginners is the one, which is the safest and also the most mobile. Therefore, every trader should choose a platform that will work with all of your devices and be compatible with all operating systems you are using. Furthermore, it should work constantly and stably so that the trader does not incur losses.
What other features might the trading platform have?
There is so much trading software available that every trader can choose the best one for themselves. First, however, it is helpful to get acquainted with some of the criteria which a trading platform should meet:
- Technical analysis tools - each trading platform should provide users with access to online tools to perform high-quality technical analysis of the currency market; this is one of the most critical criteria in choosing a trading platform.
- History and news feed - the more structured information a trader has access to, the more rational and balanced their decisions are. With the help of the newsfeed, the investor can forecast future market moves.
- Trade orders - equity trading platforms must provide access to all significant order types (market, linked, and pending). Only these features can offer a complete trading process in the market.
- A wide range of trading tools - stock trading platforms typically offer the most significant number of trading tools. Innovative technologies should be integrated into a modern trading platform; this is very important.
One of the main instruments with which market traders deal is a chart of price changes. In a price chart, on the horizontal axis, we usually put time. Then, we set the value of a given instrument quotation (quotation for a particular currency pair).
The scale of the time axis may have different values, which are called intervals or timeframes. In any trading platform it is possible to switch the chart window from one timeframe to another and simultaneously display several windows with charts of the same instrument in different timeframes.
All currency pairs, as we know, have two prices at any given time - the buy price (Ask) and the selling price (Bid). The majority of trading terminals chart symbols at Bid prices. Correspondingly, the level of these very prices corresponds to the coordinates of arrangement of elements of price charts.
What types of charts are used in trading? Below you will find the most common ones.
Despite its lack of information, the line chart is still frequently used by traders. A linear price chart is constructed by joining with straight-line points, one of which is selected for each time interval. As a rule, close prices are chosen as these points. However, a trader can also use the prices and the average between high and low for this interval.
The advantages of a line chart are the relative ease of identifying patterns and, thanks to the absence of redundant information, a more accurate display of trends that existed during a given period.
- Candlestick chart.
It is believed that the candlestick chart was invented in Japan in the second half of the XVIII century by rice traders. The elements of this type of chart are the so-called "Japanese candles". Each candlestick is a rectangle, the vertical sides parallel to the price axis and horizontal, respectively - the axis of time. This rectangle is called the body of the candle. In addition, the middle of the upper and lower faces of the rectangle may be adjacent to the segments, which are called shadows.
- Bar chart.
Each time interval is indicated in a bar chart by an element (bar) consisting of one vertical bar and two horizontal bars adjacent to it.
Coordinates of the upper and lower ends of the bar correspond to the levels of high and low prices of the interval, the segment to the left is adjoined at the level of open price. The segment to the right - at the close price level (or the current price, in case the interval is not completed yet and the bar is not closed accordingly). Thus, depending on whether the right horizontal segment is higher or lower than the left horizontal segment, the observer can determine whether the price of an instrument has risen or fallen during a given period.
The main advantage of a bar chart over a line chart is that bars make it possible to evaluate changes in price from period to period and reflect the price variations within each time interval. Also, you can see price gaps (if they are present, of course).
Among the disadvantages of the bar chart, we can name some difficulties faced by a trader when trying to determine the price movement direction at a glance over a short period of time. First, price movements within elementary intervals of the timeframe cannot be identified by bars; for this purpose, one should switch to a smaller timeframe.
A Kagi chart is a sequence of vertical lines of two thicknesses connected by short horizontal segments. Thick sections are called "Yang lines", and thin sections are called "Yin lines". At the same time, the time axis is absent in graphs of this type.
The Kagi chart is started to be drawn from a particular base point. The first line is illustrated in the direction of price movement. As long as the direction is not changed, the line is extended to the levels the price reaches. When the direction is changed at a distance more significant than the specified reversal parameter (also called the "reversal ratio"), a short segment is drawn from the end of the current vertical line to the right. Then a line is drawn from this segment to the level of the current price value.
Horizontal segments where the direction of vertical lines changes from below to above are called the waist and those where the downward reversal takes place are called shoulders. When the Yang line descends below the previous waist, it turns into Yin. And vice versa, when Yin exceeds the level of the last shoulder - it turns into Yang.
The advantage of this type of chart is that they give obvious trading signals. For example, one of the most popular interpretations of the Kagi charts reads: "When Yang turns into Yin - sell, and when Yin turns into Yang - buy!
At the same time, Kagi charts provide almost no information about price movements within periods, which makes them of little use for short-term trading.
There are other exciting types of charts, which help traders in their work and reduce risks. Therefore, as far as possible, gradually study the charts which can be helpful.
How to start online trading in Malaysia?
To start trading, you need to download the platform on your gadget or computer and register. The registration process does not take much time. The platform asks for some personal details and identifies you for security reasons.
Opening a demo account
It is essential to understand that a trading platform must necessarily meet fundamental characteristics and meet all a trader's requirements. If you are looking for the right platform for trading, download a trading platform and open a demo account. This is the best way to determine the advantages and disadvantages of the platform. You will also be able to practice without the risk of losing money.
Opening a real account
When the training is done, the terminal is mastered, the broker is chosen, and the trading system is built. Then, it's time to open a real account. What should be the deposit amount? Of course, it depends on the financial possibilities of a beginning trader. At the same time, we can give some objective recommendations regarding the size of the first real account. Many brokers offer accounts with a minimum deposit beginning from $10 (we are not talking about cent accounts).
Learn to analyse the market, consider the risks and choose a trading platform that feels all traders' requirements and is easily adapted to the nuances of the exchange. Then you can expect success!