If you are spread betting, you’ll be using tech to execute trades in the most efficient and profitable way. But what are all the different types of tech and do they help or hinder with transactions?
Tech can help investors in providing access to fundamental analysis and tools that enhance the experience. Trading, like many other industries, has come to rely on tech to make the process simpler. Here’s a quick run-through of the different types of tech in regular use.
Becoming a digital trader has never been easier, and it’s how the vast majority of traders will access the market. This ease of access has opened up all types of investment options for casual traders and removed many of the hefty broker fees that applied too.
It may seem like the ideal solution but placing your own trades can be difficult. More liable to get drawn into trading or chasing a win, you’ll need to be strong to resist the psychological lure.
However, with great liquidity, limited slippage, tight spreads and opportunities for leverage, it’s hard to imagine what trading would be like if online platforms weren’t available.
Automated tech for trading may sound like a problem waiting to happen, but it’s an integral part of opening and closing positions. Tech can be instrumental in preventing huge losses, protecting traders when the market moves in the wrong direction. Furthermore, it can be argued this solution is quite useful to safeguard those who may not fully understand spread betting and need time to gain confidence and experience.
Stop loss or limit orders are instrumental pieces of automated tech. These are orders that you set which mean that you close a position when the market reaches the point you specify. When the market moves quickly, if you’re not watching it constantly, you could easily be caught out, wiping out your entire account. Automated tech stops that from happening, enabling you to make rapid movements that match the market’s pace.
In the past, if you wanted to execute a trade, you’d have needed to be in front of your computer. This could mean a trader glued to the screen for hours at a time, reluctant even to take a bathroom break!
Things have moved on, and there are now numerous mobile trading apps which keep you connected wherever you are. Smartphone screens have grown in size, so the operation tends to be less fiddly. You should be able to carry out all the essential functions from a trading app, giving you maximum convenience without sacrificing your investment’s performance.
If you really want to use the latest technology, you might even want to look at the availability of trading apps on your Apple Watch. Although not compatible with all brokers, the Apple Watch offers the ultimate in convenient design, even if the execution is a little tricky due to its size.